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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811- 07584

Rydex Series Funds

 (Exact name of registrant as specified in charter)

702 King Farm Boulevard, Suite 200
Rockville, Maryland 20850

(Address of principal executive offices) (Zip code)

Amy J. Lee

Rydex Series Funds
702 King Farm Boulevard, Suite 200
Rockville, Maryland 20850

(Name and address of agent for service)

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

Date of fiscal year end: March 31

Date of reporting period: September 30, 2019

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:

9.30.2019

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

Beginning on January 1, 2021, paper copies of the Funds’ annual and semi-annual shareholder reports may no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a fund electronically by calling 800.820.0888, going to GuggenheimInvestments.com/myaccount, or by contacting your financial intermediary.

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

GuggenheimInvestments.com RSECF-SEMI-0919x0320

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
BANKING FUND	10
BASIC MATERIALS FUND	17
BIOTECHNOLOGY FUND	25
CONSUMER PRODUCTS FUND	32
ELECTRONICS FUND	39
ENERGY FUND	47
ENERGY SERVICES FUND	55
FINANCIAL SERVICES FUND	63
HEALTH CARE FUND	72
INTERNET FUND	80
LEISURE FUND	87
PRECIOUS METALS FUND	96
REAL ESTATE FUND	103
RETAILING FUND	111
TECHNOLOGY FUND	119
TELECOMMUNICATIONS FUND	127
TRANSPORTATION FUND	135
UTILITIES FUND	143
NOTES TO FINANCIAL STATEMENTS	150
OTHER INFORMATION	160
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	163
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	168

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2019

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for 18 of our sector funds (the “Fund” or “Funds”). This report covers performance for the six-month period ended September 30, 2019.

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,

Security Investors, LLC
October 31, 2019

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

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

Sector funds may not be suitable for all investors. Investing in sector funds is more volatile than investing in broadly diversified funds, as there is a greater risk due to the concentration of the fund’s holdings in issuers within the same sector or industry. Certain of the sector funds are considered non-diversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2019

Economic data has been mixed over the past few months. On the positive side, we saw a pickup in the housing market as measured by housing starts and home sales, which could be a delayed response to lower mortgage rates. Industrial production had the strongest month-over-month gain in a year, partially boosted by an increase in oil production in Hurricane Barry’s wake. The unemployment rate fell to a 50-year low of 3.5% in September 2019, despite a continued moderation in payroll gains.

On the negative side, the Institute for Supply Management (“ISM”) Manufacturing Index plunged to the weakest reading since June 2009. The ISM Non-Manufacturing Index also came in well below expectations, the lowest since August 2016. Within both the manufacturing and non-manufacturing ISM indexes, analysts look at the employment component of the survey for an early read on other labor market indicators. Here we find more cause for concern: the non-manufacturing survey’s employment component is now barely above 50 while the manufacturing employment sub-index stands at 46.3, well into contraction territory. Combined, the outlook for output and hiring has dimmed, signaling trouble ahead for consumers.

Retail sales have been steady, but Commerce Department data showed that total consumer spending on goods and services increased only 0.1% month-over-month in August 2019, the smallest gain in six months. It is hard to identify the primary reason why consumers may already be turning more conservative on spending. Income growth looks steady, the equity market is higher year-to-date, and rates are lower, all of which should be boosting consumer confidence. Sentiment surveys, however, show that fewer consumers believe now is a good time to buy homes, vehicles, and household durables, and headline consumer confidence measures have ticked down. We believe trade policy and political concerns are weighing on sentiment, and these headwinds are set to ramp up further. Additional U.S. tariffs on China are due to take effect on December 15, 2019 and the U.S. House of Representatives is pressing forward with its impeachment inquiry into President Trump.

Guggenheim’s dashboard of U.S. recession indicators continues to point to a recession beginning as early as the first half of 2020, and we think the economic data is corroborating this view. Two of the more notable indicators pointing to high recession risk are the three-month/10-year U.S. Treasury yield curve, which has been inverted for 16 consecutive weeks through period end, and the Leading Economic Indicators Index which has slowed from a year-over-year growth rate of 6.6% in September 2018 to 1.1% as of August 2019. The indicators Guggenheim tracks as part of our recession probability model indicate a nearly 50% chance that a recession will come before mid-2020, and a 70% chance that it will arrive by mid-2021.

Over the period, the U.S. Treasury curve continued its overall flattening trend, as the difference between the two-year U.S. Treasury and 10-year U.S. Treasury narrowed to 5 basis points. Equity markets remained volatile, buoyed by a 25 basis point cut in July and September 2019 by the U.S. Federal Reserve (the “Fed”) and relatively strong U.S. economic data, but weighed down by trade war uncertainty and fears of a global slowdown.

With downside risks growing, markets have become more sensitive to the Fed’s communications about the future stance of monetary policy. Despite the two rate cuts, Fed policymakers are deeply divided. It is still unclear whether the Fed will deliver the aggressive and preemptive policy action that would prolong the current expansion.

As it relates to risk-taking, we are not confident that the Fed would succeed in easing credit conditions if conditions were to tighten materially. The Fed may act too late, or its actions may have little impact given that low rates this year have largely failed to stimulate growth. With credit spreads still relatively tight on a historical basis, we believe it is prudent to remain up in quality as we await better opportunities to deploy capital in riskier credit sectors in the coming downturn.

For the six-month period ended September 30, 2019, the Standard & Poor’s 500^® (“S&P 500”) Index^* returned 6.08%. The MSCI Europe-Australasia-Far East (“EAFE”) Index^* returned 2.93%. The return of the MSCI Emerging Markets Index^* was -3.40%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index^* posted a 5.42% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index^* returned 3.87%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index^* was 1.20% 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2019

^*Index Definitions:

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

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

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

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

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

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

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

S&P 500^® 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.

S&P 500^® Consumer Discretionary Index is a sub-index of the S&P 500^® Index. The Consumer Discretionary Index includes companies in the following industries: automobiles and components, consumer durables, apparel, hotels, restaurants, leisure, media, and retailing.

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

S&P 500^® Energy Index is a sub-index of the S&P 500^® Index. The Energy Index comprises companies whose businesses are dominated by either of the following activities: the construction or provision of oil rigs, drilling equipment, and other energy-related equipment and services, including seismic data collection; companies engaged in the exploration, production, marketing, refining, and/or transportation of oil and gas products, coal, and other consumable fuels.

S&P 500^® Financials Index is a sub-index of the S&P 500^® Index. The Financials Index contains companies involved in activities such as banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, financial investment, and real estate, including REITs.

S&P 500^® Health Care Index is a sub-index of the S&P 500^® Index. The Health Care Index encompasses two main industry groups. The first includes companies which manufacture health care equipment and supplies or provide health care-related services, including distributors of health care products, providers of basic health-care services, and owners and operators of health care facilities and organizations. The first group also includes companies operating in the health care technology industry. The second group includes companies primarily involved in the research, development, production, and marketing of pharmaceuticals, biotechnology, and life sciences products.

S&P 500^® Industrials Index is a sub-index of the S&P 500^® Index. The Industrials Index includes companies whose businesses are dominated by one of the following activities: the manufacture and distribution of capital goods, including aerospace & defense, construction, engineering & building products, electrical equipment, and industrial machinery; the provision of commercial services and supplies, including printing, environmental, office, and security services; the provision of professional services, including employment and research & consulting services; or the provision of transportation services, including airlines, couriers, marine, road & rail, and transportation infrastructure.

S&P 500^® Information Technology Index is a sub-index of the S&P 500^® Index. The Information Technology Index covers the following general areas: technology software & services, including companies that primarily develop software in various fields such as the internet, applications, systems, databases management, and/or home entertainment, and companies that provide information technology consulting and services, as well as data processing and outsourced services; secondly, technology hardware & equipment, including manufacturers and distributors of communications equipment, computers & peripherals, electronic equipment, and related instruments; and thirdly, semiconductors & semiconductor equipment manufacturers.

S&P 500^® Materials Index is a sub-index of the S&P 500^® Index. The Materials Index encompasses a wide range of commodity-related manufacturing industries. Included in this sector are companies that manufacture chemicals, construction materials, glass, paper, forest products, and related packaging products, and metals, minerals, and mining companies, including producers of steel.

S&P 500^® Telecommunication Services Index is a sub-index of the S&P 500^® Index. The Telecommunications Services Index contains companies that provide communications services primarily through a fixed-line, cellular, wireless, high bandwidth, and/or fiber optic cable network.

S&P 500^® Utilities Index is a sub-index of the S&P 500^® Index. The Utilities Index encompasses those companies considered electric, gas or water utilities, or companies that operate as independent producers and/or distributors of power.

4 | THE RYDEX FUNDS 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, 2019 and ending September 30, 2019.

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, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Banking Fund
Investor Class	1.46%	5.56%	$ 1,000.00	$ 1,055.60	$ 7.52
A-Class	1.71%	5.43%	1,000.00	1,054.30	8.81
C-Class	2.46%	5.02%	1,000.00	1,050.20	12.64
H-Class	1.71%	5.45%	1,000.00	1,054.50	8.81
Basic Materials Fund
Investor Class	1.46%	1.19%	1,000.00	1,011.90	7.36
A-Class	1.71%	1.07%	1,000.00	1,010.70	8.62
C-Class	2.46%	0.69%	1,000.00	1,006.90	12.38
H-Class	1.71%	1.05%	1,000.00	1,010.50	8.62
Biotechnology Fund
Investor Class	1.46%	(11.83%)	1,000.00	881.70	6.89
A-Class	1.71%	(11.93%)	1,000.00	880.70	8.06
C-Class	2.46%	(12.26%)	1,000.00	877.40	11.58
H-Class	1.71%	(11.93%)	1,000.00	880.70	8.06
Consumer Products Fund
Investor Class	1.46%	6.09%	1,000.00	1,060.90	7.54
A-Class	1.71%	5.98%	1,000.00	1,059.80	8.83
C-Class	2.46%	5.57%	1,000.00	1,055.70	12.68
H-Class	1.71%	5.97%	1,000.00	1,059.70	8.83
Electronics Fund
Investor Class	1.46%	12.26%	1,000.00	1,122.60	7.77
A-Class	1.71%	12.12%	1,000.00	1,121.20	9.09
C-Class	2.46%	11.70%	1,000.00	1,117.00	13.06
H-Class	1.71%	12.10%	1,000.00	1,121.00	9.09
Energy Fund
Investor Class	1.46%	(14.90%)	1,000.00	851.00	6.77
A-Class	1.71%	(15.01%)	1,000.00	849.90	7.93
C-Class	2.46%	(15.32%)	1,000.00	846.60	11.39
H-Class	1.71%	(15.07%)	1,000.00	849.30	7.93
Energy Services Fund
Investor Class	1.47%	(28.35%)	1,000.00	716.50	6.33
A-Class	1.72%	(28.41%)	1,000.00	715.90	7.40
C-Class	2.47%	(28.68%)	1,000.00	713.20	10.61
H-Class	1.72%	(28.24%)	1,000.00	717.60	7.41
Financial Services Fund
Investor Class	1.46%	8.33%	1,000.00	1,083.30	7.62
A-Class	1.71%	8.21%	1,000.00	1,082.10	8.93
C-Class	2.46%	7.81%	1,000.00	1,078.10	12.82
H-Class	1.71%	8.21%	1,000.00	1,082.10	8.93
Health Care Fund
Investor Class	1.46%	(3.75%)	1,000.00	962.50	7.18
A-Class	1.71%	(3.90%)	1,000.00	961.00	8.41
C-Class	2.46%	(4.27%)	1,000.00	957.30	12.07
H-Class	1.71%	(3.87%)	1,000.00	961.30	8.41

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Internet Fund
Investor Class	1.46%	(3.41%)	$ 1,000.00	$ 965.90	$ 7.20
A-Class	1.71%	(3.54%)	1,000.00	964.60	8.42
C-Class	2.46%	(3.89%)	1,000.00	961.10	12.09
H-Class	1.71%	(3.55%)	1,000.00	964.50	8.42
Leisure Fund
Investor Class	1.47%	1.80%	1,000.00	1,018.00	7.44
A-Class	1.71%	1.68%	1,000.00	1,016.80	8.65
C-Class	2.46%	1.27%	1,000.00	1,012.70	12.41
H-Class	1.72%	1.65%	1,000.00	1,016.50	8.69
Precious Metals Fund
Investor Class	1.36%	16.41%	1,000.00	1,164.10	7.38
A-Class	1.61%	16.27%	1,000.00	1,162.70	8.73
C-Class	2.36%	15.90%	1,000.00	1,159.00	12.77
H-Class	1.61%	16.38%	1,000.00	1,163.80	8.73
Real Estate Fund
A-Class	1.71%	6.13%	1,000.00	1,061.30	8.84
C-Class	2.46%	5.73%	1,000.00	1,057.30	12.69
H-Class	1.71%	6.15%	1,000.00	1,061.50	8.84
Retailing Fund
Investor Class	1.46%	1.70%	1,000.00	1,017.00	7.38
A-Class	1.71%	1.58%	1,000.00	1,015.80	8.64
C-Class	2.46%	1.18%	1,000.00	1,011.80	12.41
H-Class	1.72%	1.59%	1,000.00	1,015.90	8.69
Technology Fund
Investor Class	1.46%	4.33%	1,000.00	1,043.30	7.48
A-Class	1.71%	4.20%	1,000.00	1,042.00	8.75
C-Class	2.46%	3.80%	1,000.00	1,038.00	12.57
H-Class	1.71%	4.21%	1,000.00	1,042.10	8.75
Telecommunications Fund
Investor Class	1.47%	0.24%	1,000.00	1,002.40	7.38
A-Class	1.71%	0.13%	1,000.00	1,001.30	8.58
C-Class	2.46%	(0.25%)	1,000.00	997.50	12.32
H-Class	1.71%	0.11%	1,000.00	1,001.10	8.58
Transportation Fund
Investor Class	1.46%	1.50%	1,000.00	1,015.00	7.37
A-Class	1.71%	1.36%	1,000.00	1,013.60	8.63
C-Class	2.46%	0.97%	1,000.00	1,009.70	12.39
H-Class	1.71%	1.34%	1,000.00	1,013.40	8.63
Utilities Fund
Investor Class	1.46%	8.98%	1,000.00	1,089.80	7.65
A-Class	1.71%	8.85%	1,000.00	1,088.50	8.95
C-Class	2.46%	8.42%	1,000.00	1,084.20	12.85
H-Class	1.71%	8.85%	1,000.00	1,088.50	8.95

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Banking Fund
Investor Class	1.46%	5.00%	$ 1,000.00	$ 1,017.75	$ 7.38
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
Basic Materials Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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
Biotechnology Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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
Consumer Products Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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
Electronics Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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
Energy Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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
Energy Services Fund
Investor Class	1.47%	5.00%	1,000.00	1,017.70	7.44
A-Class	1.72%	5.00%	1,000.00	1,016.44	8.69
C-Class	2.47%	5.00%	1,000.00	1,012.68	12.46
H-Class	1.72%	5.00%	1,000.00	1,016.44	8.69
Financial Services Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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
Health Care Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Internet Fund
Investor Class	1.46%	5.00%	$ 1,000.00	$ 1,017.75	$ 7.38
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
Leisure Fund
Investor Class	1.47%	5.00%	1,000.00	1,017.70	7.44
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	1.72%	5.00%	1,000.00	1,016.44	8.69
Precious Metals 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
Real Estate 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
Retailing Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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	1.72%	5.00%	1,000.00	1,016.44	8.69
Technology Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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
Telecommunications Fund
Investor Class	1.47%	5.00%	1,000.00	1,017.70	7.44
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
Transportation Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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
Utilities Fund
Investor Class	1.46%	5.00%	1,000.00	1,017.75	7.38
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, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2019 to September 30, 2019.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
Wells Fargo & Co.	4.2%
Citigroup, Inc.	4.0%
JPMorgan Chase & Co.	4.0%
Bank of America Corp.	4.0%
U.S. Bancorp	3.5%
PNC Financial Services Group, Inc.	3.0%
Capital One Financial Corp.	2.4%
BB&T Corp.	2.4%
Bank of New York Mellon Corp.	2.4%
SunTrust Banks, Inc.	2.1%
Top Ten Total	32.0%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	5.56%	(4.64%)	5.52%	6.62%
A-Class Shares	5.43%	(4.88%)	5.26%	6.36%
A-Class Shares with sales charge‡	0.42%	(9.40%)	4.25%	5.84%
C-Class Shares	5.02%	(5.60%)	4.48%	5.56%
C-Class Shares with CDSC§	4.02%	(6.52%)	4.48%	5.56%
H-Class Shares**	5.45%	(4.88%)	5.24%	6.22%
S&P 500 Financials Index	10.17%	3.92%	10.51%	10.77%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Financials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
BANKING FUND

	Shares		Value
COMMON STOCKS† - 99.1%
Banks - 91.5%
Wells Fargo & Co.		15,542	$	783,938
Citigroup, Inc.		10,881		751,660
JPMorgan Chase & Co.		6,371		749,803
Bank of America Corp.		25,468		742,902
U.S. Bancorp		11,896		658,325
PNC Financial Services Group, Inc.		3,971		556,575
BB&T Corp.		8,545		456,047
Bank of New York Mellon Corp.		10,014		452,733
SunTrust Banks, Inc.		5,729		394,155
M&T Bank Corp.		2,074		327,630
State Street Corp.		5,520		326,729
Northern Trust Corp.		3,392		316,541
Fifth Third Bancorp		11,500		314,870
KeyCorp		16,802		299,748
First Republic Bank		2,969		287,102
Citizens Financial Group, Inc.		7,937		280,732
Regions Financial Corp.		17,738		280,615
Huntington Bancshares, Inc.		19,035		271,629
SVB Financial Group*		1,100		229,845
ICICI Bank Ltd. ADR		18,685		227,583
Comerica, Inc.		3,379		222,980
HDFC Bank Ltd. ADR		3,906		222,837
Zions Bancorp North America		4,467		198,871
HSBC Holdings plc ADR		4,998		191,273
Toronto-Dominion Bank		3,251		189,403
Royal Bank of Canada		2,320		188,291
Popular, Inc.		3,466		187,441
Bank of Nova Scotia		3,210		182,489
Commerce Bancshares, Inc.		3,003		182,132
Bank of Montreal		2,443		180,171
Signature Bank		1,508		179,784
UBS Group AG*		15,742		178,042
East West Bancorp, Inc.		4,004		177,337
Canadian Imperial Bank of Commerce		2,125		175,440
Credit Suisse Group AG ADR*		14,136		172,601
TCF Financial Corp.		4,425		168,460
Cullen/Frost Bankers, Inc.		1,902		168,422
BOK Financial Corp.		2,114		167,323
Synovus Financial Corp.		4,639		165,891
First Citizens BancShares, Inc. — Class A		343		161,742
First Horizon National Corp.		9,796		158,695
Prosperity Bancshares, Inc.		2,215		156,445
Western Alliance Bancorporation		3,361		154,875
First Financial Bankshares, Inc.		4,528		150,918
Pinnacle Financial Partners, Inc.		2,637		149,650
Webster Financial Corp.		3,143		147,312
CIT Group, Inc.		3,247		147,122
PacWest Bancorp		4,016		145,941
IBERIABANK Corp.		1,849		139,673
FNB Corp.		12,006		138,429
United Bankshares, Inc.		3,638		137,771
Glacier Bancorp, Inc.		3,362		136,027
Wintrust Financial Corp.		2,081		134,495
Umpqua Holdings Corp.		8,110		133,491
Bank OZK		4,859		132,505
First Hawaiian, Inc.		4,948		132,112
Associated Banc-Corp.		6,411		129,823
Hancock Whitney Corp.		3,363		128,786
BankUnited, Inc.		3,740		125,739
Home BancShares, Inc.		6,645		124,893
UMB Financial Corp.		1,931		124,704
CenterState Bank Corp.		5,172		124,050
BancorpSouth Bank		4,137		122,497
Old National Bancorp		6,976		120,022
Atlantic Union Bankshares Corp.		3,221		119,966
CVB Financial Corp.		5,670		118,333
Texas Capital Bancshares, Inc.*		2,151		117,552
Cathay General Bancorp		3,380		117,404
Columbia Banking System, Inc.		3,169		116,936
Fulton Financial Corp.		7,097		114,829
First Financial Bancorp		4,562		111,655
Simmons First National Corp. — Class A		4,386		109,211
United Community Banks, Inc.		3,810		108,014
Cadence BanCorp		6,050		106,117
Trustmark Corp.		3,103		105,843
LegacyTexas Financial Group, Inc.		2,375		103,384
First Midwest Bancorp, Inc.		5,302		103,283
Hope Bancorp, Inc.		6,643		95,261
Total Banks				17,213,855
Savings & Loans - 2.9%
People’s United Financial, Inc.		11,251		175,909
Sterling Bancorp		7,140		143,229
Investors Bancorp, Inc.		10,980		124,733
Pacific Premier Bancorp, Inc.		3,101		96,720
Total Savings & Loans				540,591
Diversified Financial Services - 2.4%
Capital One Financial Corp.		5,026		457,266
Insurance - 2.3%
AXA Equitable Holdings, Inc.		10,361		229,600
Voya Financial, Inc.		3,583		195,058
Total Insurance				424,658
Total Common Stocks
(Cost $17,256,466)				18,636,370

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
BANKING FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.3%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	31,932	$	31,932
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		10,268		10,268
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		9,242		9,242
Total Repurchase Agreements
(Cost $51,442)				51,442
Total Investments - 99.4%
(Cost $17,307,908)			$	18,687,812
Other Assets & Liabilities, net - 0.6%				118,185
Total Net Assets - 100.0%			$	18,805,997

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 6.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	18,636,370	$	—	$	—	$	18,636,370
Repurchase Agreements		—		51,442		—		51,442
Total Assets	$	18,636,370	$	51,442	$	—	$	18,687,812

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

BANKING FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value (cost $17,256,466)	$	18,636,370
Repurchase agreements, at value (cost $51,442)		51,442
Receivables:
Fund shares sold		166,805
Dividends		29,463
Foreign tax reclaims		751
Securities lending income		12
Interest		3
Total assets		18,884,846
Liabilities:
Payable for:
Fund shares redeemed		51,421
Management fees		8,503
Transfer agent and administrative fees		2,501
Distribution and service fees		2,068
Portfolio accounting fees		1,001
Trustees’ fees*		251
Miscellaneous		13,104
Total liabilities		78,849
Commitments and contingent liabilities (Note 9)		—
Net assets	$	18,805,997
Net assets consist of:
Paid in capital	$	19,702,833
Total distributable earnings (loss)		(896,836	)
Net assets	$	18,805,997
Investor Class:
Net assets	$	8,410,717
Capital shares outstanding		106,824
Net asset value per share	$	78.73
A-Class:
Net assets	$	4,366,293
Capital shares outstanding		61,074
Net asset value per share	$	71.49
Maximum offering price per share (Net asset value divided by 95.25%)	$	75.06
C-Class:
Net assets	$	1,206,397
Capital shares outstanding		18,982
Net asset value per share	$	63.55
H-Class:
Net assets	$	4,822,590
Capital shares outstanding		69,293
Net asset value per share	$	69.60

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $2,913)	$	186,937
Interest		795
Income from securities lending, net		37
Total investment income		187,769
Expenses:
Management fees		53,395
Distribution and service fees:
A-Class		5,819
C-Class		6,291
H-Class		1,839
Transfer agent and administrative fees		15,704
Registration fees		7,830
Portfolio accounting fees		6,282
Trustees’ fees*		2,099
Custodian fees		912
Line of credit fees		49
Miscellaneous		5,646
Total expenses		105,866
Net investment income		81,903
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		739,743
Net realized gain		739,743
Net change in unrealized appreciation (depreciation) on:
Investments		(117,323	)
Net change in unrealized appreciation (depreciation)		(117,323	)
Net realized and unrealized gain		622,420
Net increase in net assets resulting from operations	$	704,323

^* 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 | 13

BANKING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	81,903		$	179,656
Net realized gain on investments		739,743			800,892
Net change in unrealized appreciation (depreciation) on investments		(117,323	)		(4,677,698	)
Net increase (decrease) in net assets resulting from operations		704,323			(3,697,150	)
Distributions to shareholders:
Investor Class		—			(97,425	)
A-Class		—			(93,207	)
C-Class		—			(91,847	)
H-Class		—			(5,420	)
Total distributions to shareholders		—			(287,899	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		45,724,612			106,641,289
A-Class		457,512			4,740,864
C-Class		844,603			5,542,911
H-Class		6,312,182			73,023,137
Distributions reinvested
Investor Class		—			91,809
A-Class		—			89,208
C-Class		—			91,561
H-Class		—			5,361
Cost of shares redeemed
Investor Class		(43,645,917	)		(124,774,957	)
A-Class		(1,182,429	)		(3,478,711	)
C-Class		(985,997	)		(7,834,143	)
H-Class		(3,084,285	)		(85,075,671	)
Net increase (decrease) from capital share transactions		4,440,281			(30,937,342	)
Net increase (decrease) in net assets		5,144,604			(34,922,391	)
Net assets:
Beginning of period		13,661,393			48,583,784
End of period	$	18,805,997		$	13,661,393
Capital share activity:
Shares sold
Investor Class		598,958			1,312,693
A-Class		6,355			65,441
C-Class		13,432			79,933
H-Class		90,668			1,002,598
Shares issued from reinvestment of distributions
Investor Class		—			1,285
A-Class		—			1,372
C-Class		—			1,575
H-Class		—			85
Shares redeemed
Investor Class		(572,552	)		(1,537,374	)
A-Class		(16,794	)		(47,026	)
C-Class		(15,669	)		(117,694	)
H-Class		(44,571	)		(1,164,683	)
Net increase (decrease) in shares		59,827			(401,795	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	74.58		$	86.27		$	76.86		$	56.13		$	62.71		$	63.60
Income (loss) from investment operations:
Net investment income (loss)b		.57			.81			.60			.53			.68			.51
Net gain (loss) on investments (realized and unrealized)		3.58			(10.92	)		9.12			20.51			(6.97	)		(.98	)
Total from investment operations		4.15			(10.11	)		9.72			21.04			(6.29	)		(.47	)
Less distributions from:
Net investment income		—			(1.58	)		(.31	)		(.31	)		(.29	)		(.42	)
Total distributions		—			(1.58	)		(.31	)		(.31	)		(.29	)		(.42	)
Net asset value, end of period	$	78.73		$	74.58		$	86.27		$	76.86		$	56.13		$	62.71
Total Return		5.56	%		(11.63	%)		12.63	%		37.53	%		(10.10	%)		(0.73	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,411		$	5,997		$	26,209		$	41,473		$	7,206		$	43,989
Ratios to average net assets:
Net investment income (loss)		1.47	%		0.97	%		0.73	%		0.74	%		1.07	%		0.82	%
Total expenses		1.46	%		1.46	%		1.38	%		1.38	%		1.34	%		1.34	%
Portfolio turnover rate		326	%		633	%		772	%		907	%		514	%		583	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	67.81		$	78.80		$	70.41		$	51.55		$	57.76		$	58.75
Income (loss) from investment operations:
Net investment income (loss)b		.45			.57			.37			.33			.40			.26
Net gain (loss) on investments (realized and unrealized)		3.23			(9.98	)		8.33			18.84			(6.32	)		(.83	)
Total from investment operations		3.68			(9.41	)		8.70			19.17			(5.92	)		(.57	)
Less distributions from:
Net investment income		—			(1.58	)		(.31	)		(.31	)		(.29	)		(.42	)
Total distributions		—			(1.58	)		(.31	)		(.31	)		(.29	)		(.42	)
Net asset value, end of period	$	71.49		$	67.81		$	78.80		$	70.41		$	51.55		$	57.76
Total Returnc		5.43	%		(11.85	%)		12.37	%		37.21	%		(10.31	%)		(0.98	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,366		$	4,849		$	4,076		$	5,934		$	876		$	1,054
Ratios to average net assets:
Net investment income (loss)		1.29	%		0.76	%		0.50	%		0.51	%		0.69	%		0.45	%
Total expenses		1.71	%		1.72	%		1.63	%		1.63	%		1.59	%		1.60	%
Portfolio turnover rate		326	%		633	%		772	%		907	%		514	%		583	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	60.51		$	71.05		$	63.98		$	47.22		$	53.34		$	54.69
Income (loss) from investment operations:
Net investment income (loss)b		.17			(.05	)		(.17	)		(.05	)		.03			(.14	)
Net gain (loss) on investments (realized and unrealized)		2.87			(8.91	)		7.55			17.12			(5.86	)		(.79	)
Total from investment operations		3.04			(8.96	)		7.38			17.07			(5.83	)		(.93	)
Less distributions from:
Net investment income		—			(1.58	)		(.31	)		(.31	)		(.29	)		(.42	)
Total distributions		—			(1.58	)		(.31	)		(.31	)		(.29	)		(.42	)
Net asset value, end of period	$	63.55		$	60.51		$	71.05		$	63.98		$	47.22		$	53.34
Total Returnc		5.02	%		(12.51	%)		11.54	%		36.18	%		(10.99	%)		(1.71	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,206		$	1,284		$	4,079		$	5,634		$	3,188		$	3,131
Ratios to average net assets:
Net investment income (loss)		0.54	%		(0.07	%)		(0.25	%)		(0.09	%)		0.05	%		(0.26	%)
Total expenses		2.46	%		2.46	%		2.38	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		326	%		633	%		772	%		907	%		514	%		583	%

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	66.00		$	76.78		$	68.61		$	50.22		$	56.30		$	57.40
Income (loss) from investment operations:
Net investment income (loss)b		.49			.45			.39			.29			.33			(.01	)
Net gain (loss) on investments (realized and unrealized)		3.11			(9.65	)		8.09			18.41			(6.12	)		(.67	)
Total from investment operations		3.60			(9.20	)		8.48			18.70			(5.79	)		(.68	)
Less distributions from:
Net investment income		—			(1.58	)		(.31	)		(.31	)		(.29	)		(.42	)
Total distributions		—			(1.58	)		(.31	)		(.31	)		(.29	)		(.42	)
Net asset value, end of period	$	69.60		$	66.00		$	76.78		$	68.61		$	50.22		$	56.30
Total Return		5.45	%		(11.89	%)		12.38	%		37.26	%		(10.34	%)		(1.19	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,823		$	1,531		$	14,220		$	8,467		$	1,360		$	847
Ratios to average net assets:
Net investment income (loss)		1.43	%		0.60	%		0.52	%		0.45	%		0.57	%		(0.02	%)
Total expenses		1.71	%		1.70	%		1.62	%		1.63	%		1.68	%		1.85	%
Portfolio turnover rate		326	%		633	%		772	%		907	%		514	%		583	%

a	Unaudited figures for the period ended September 30, 2019. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
Ecolab, Inc.	3.2%
DuPont de Nemours, Inc.	3.1%
Sherwin-Williams Co.	2.9%
Air Products & Chemicals, Inc.	2.9%
Dow, Inc.	2.5%
Linde plc	2.4%
LyondellBasell Industries N.V. — Class A	2.3%
Newmont Goldcorp Corp.	2.3%
PPG Industries, Inc.	2.2%
Ball Corp.	2.0%
Top Ten Total	25.8%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	1.19%	(2.31%)	3.62%	4.83%
A-Class Shares	1.07%	(2.56%)	3.36%	4.57%
A-Class Shares with sales charge‡	(3.74%)	(7.18%)	2.36%	4.06%
C-Class Shares	0.69%	(3.28%)	2.59%	3.79%
C-Class Shares with CDSC§	(0.31%)	(4.23%)	2.59%	3.79%
H-Class Shares**	1.05%	(2.58%)	3.32%	4.42%
S&P 500 Materials Index	6.18%	2.70%	5.37%	9.23%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Materials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 17

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
BASIC MATERIALS FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Chemicals - 46.7%
Ecolab, Inc.		5,324	$	1,054,365
DuPont de Nemours, Inc.		14,413		1,027,791
Sherwin-Williams Co.		1,789		983,717
Air Products & Chemicals, Inc.		4,338		962,429
Dow, Inc.		17,669		841,928
Linde plc		4,071		788,634
LyondellBasell Industries N.V. — Class A		8,668		775,526
PPG Industries, Inc.		6,084		721,015
Celanese Corp. — Class A		4,463		545,780
International Flavors & Fragrances, Inc.1		4,126		506,219
FMC Corp.		5,354		469,439
CF Industries Holdings, Inc.		9,341		459,577
Eastman Chemical Co.		6,168		455,383
RPM International, Inc.		6,040		415,612
Westlake Chemical Corp.		6,340		415,397
Mosaic Co.		19,789		405,675
Albemarle Corp.1		5,603		389,521
Axalta Coating Systems Ltd.*		12,195		367,679
Huntsman Corp.		14,188		330,013
Ashland Global Holdings, Inc.		3,932		302,961
Nutrien Ltd.		5,905		294,541
WR Grace & Co.		4,406		294,145
Valvoline, Inc.		12,953		285,355
Ingevity Corp.*		3,080		261,307
Balchem Corp.		2,572		255,117
Olin Corp.		13,345		249,818
Sensient Technologies Corp.		3,502		240,412
Cabot Corp.		5,058		229,229
Element Solutions, Inc.*		22,095		224,927
Sociedad Quimica y Minera de Chile S.A. ADR		7,860		218,429
Methanex Corp.		6,154		218,282
Chemours Co.		14,282		213,373
HB Fuller Co.		4,580		213,245
GCP Applied Technologies, Inc.*		8,395		161,604
Total Chemicals				15,578,445
Mining - 17.3%
Newmont Goldcorp Corp.		20,011		758,817
Barrick Gold Corp.		34,277		594,020
Freeport-McMoRan, Inc.		52,311		500,616
Rio Tinto plc ADR		8,775		457,090
Royal Gold, Inc.		3,182		392,054
BHP Group Ltd. ADR1		7,165		353,808
Wheaton Precious Metals Corp.		11,967		314,014
Agnico Eagle Mines Ltd.		5,762		308,901
Teck Resources Ltd. — Class B		17,297		280,730
Franco-Nevada Corp.		2,953		269,196
AngloGold Ashanti Ltd. ADR		14,623		267,162
Alcoa Corp.*		13,069		262,295
Pan American Silver Corp.		16,058		251,790
Kirkland Lake Gold Ltd.		5,550		248,640
Compass Minerals International, Inc.		3,404		192,292
Kaiser Aluminum Corp.		1,797		177,849
Livent Corp.*		20,502		137,158
Total Mining				5,766,432
Packaging & Containers - 12.1%
Ball Corp.		9,288		676,259
Packaging Corporation of America		4,307		456,973
Westrock Co.		12,162		443,305
Crown Holdings, Inc.*		6,516		430,447
Sealed Air Corp.		8,479		351,963
Sonoco Products Co.		5,820		338,782
Berry Global Group, Inc.*		8,317		326,609
Graphic Packaging Holding Co.		20,215		298,171
Amcor plc		26,840		261,690
Silgan Holdings, Inc.		8,620		258,902
Owens-Illinois, Inc.		18,253		187,458
Total Packaging & Containers				4,030,559
Iron & Steel - 8.3%
Vale S.A. ADR*		56,078		644,897
Nucor Corp.		10,679		543,668
Steel Dynamics, Inc.		12,046		358,971
Reliance Steel & Aluminum Co.		3,529		351,700
ArcelorMittal1		17,091		243,376
Allegheny Technologies, Inc.*		11,327		229,372
Carpenter Technology Corp.		4,173		215,577
Commercial Metals Co.		11,359		197,419
Total Iron & Steel				2,784,980
Building Materials - 6.2%
Vulcan Materials Co.		4,093		619,025
Martin Marietta Materials, Inc.		2,114		579,447
Eagle Materials, Inc.		2,990		269,130
Louisiana-Pacific Corp.		9,783		240,466
Summit Materials, Inc. — Class A*		10,060		223,332
US Concrete, Inc.*		2,616		144,613
Total Building Materials				2,076,013
Forest Products & Paper - 2.4%
International Paper Co.		14,013		586,023
Domtar Corp.		6,096		218,298
Total Forest Products & Paper				804,321
Biotechnology - 1.9%
Corteva, Inc.		22,441		628,348
Miscellaneous Manufacturing - 1.7%
AptarGroup, Inc.		3,254		385,436
Trinseo S.A.		4,330		185,974
Total Miscellaneous Manufacturing				571,410
Household Products & Housewares - 1.3%
Avery Dennison Corp.		3,817		433,497
Housewares - 1.0%
Scotts Miracle-Gro Co. — Class A		3,330		339,060

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
BASIC MATERIALS FUND

	Shares		Value
Coal - 0.5%
Warrior Met Coal, Inc.		7,371	$	143,882
Total Common Stocks
(Cost $26,855,763)				33,156,947
		Face Amount
REPURCHASE AGREEMENTS††,2 - 1.0%
JPMorgan Chase &Co. issued 09/30/19 at 2.35% due 10/01/19	$	217,162		217,162
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		69,832		69,832
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		62,849		62,849
Total Repurchase Agreements
(Cost $349,843)				349,843
SECURITIES LENDING COLLATERAL†,3 - 2.5%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		838,122	$	838,122
Total Securities Lending Collateral
(Cost $838,122)				838,122
Total Investments - 102.9%
(Cost $28,043,728)			$	34,344,912
Other Assets & Liabilities, net - (2.9%)				(976,355	)
Total Net Assets - 100.0%			$	33,368,557

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	33,156,947	$	—	$	—	$	33,156,947
Repurchase Agreements		—		349,843		—		349,843
Securities Lending Collateral		838,122		—		—		838,122
Total Assets	$	33,995,069	$	349,843	$	—	$	34,344,912

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

BASIC MATERIALS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $832,140 of securities loaned (cost $27,693,885)	$	33,995,069
Repurchase agreements, at value (cost $349,843)		349,843
Cash		3,307
Receivables:
Dividends		37,433
Fund shares sold		25,048
Foreign tax reclaims		194
Securities lending income		120
Interest		22
Total assets		34,411,036
Liabilities:
Payable for:
Return of securities lending collateral		838,122
Deferred foreign capital gain taxes		130,382
Management fees		22,633
Transfer agent and administrative fees		6,657
Distribution and service fees		3,448
Portfolio accounting fees		2,663
Fund shares redeemed		1,576
Trustees’ fees*		696
Miscellaneous		36,302
Total liabilities		1,042,479
Commitments and contingent liabilities (Note 9)		—
Net assets	$	33,368,557
Net assets consist of:
Paid in capital	$	31,650,113
Total distributable earnings (loss)		1,718,444
Net assets	$	33,368,557
Investor Class:
Net assets	$	22,808,729
Capital shares outstanding		388,396
Net asset value per share	$	58.73
A-Class:
Net assets	$	6,772,614
Capital shares outstanding		123,485
Net asset value per share	$	54.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	57.59
C-Class:
Net assets	$	2,446,990
Capital shares outstanding		50,916
Net asset value per share	$	48.06
H-Class:
Net assets	$	1,340,224
Capital shares outstanding		25,205
Net asset value per share	$	53.17

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $3,360)	$	420,084
Interest		3,571
Income from securities lending, net		4,956
Total investment income		428,611
Expenses:
Management fees		158,682
Distribution and service fees:
A-Class		8,451
C-Class		13,714
H-Class		1,864
Transfer agent and administrative fees		46,671
Portfolio accounting fees		18,668
Registration fees		17,764
Trustees’ fees*		4,775
Custodian fees		2,701
Miscellaneous		23,783
Total expenses		297,073
Net investment income		131,538
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		993,091
Net realized gain		993,091
Net change in unrealized appreciation (depreciation) on:
Investments		(827,255	)
Net change in unrealized appreciation (depreciation)		(827,255	)
Net realized and unrealized gain		165,836
Net increase in net assets resulting from operations	$	297,374

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

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

BASIC MATERIALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	131,538		$	190,591
Net realized gain on investments		993,091			1,031,495
Net change in unrealized appreciation (depreciation) on investments		(827,255	)		(3,199,686	)
Net increase (decrease) in net assets resulting from operations		297,374			(1,977,600	)
Distributions to shareholders:
Investor Class		—			(309,723	)
A-Class		—			(105,350	)
C-Class		—			(55,959	)
H-Class		—			(22,701	)
Total distributions to shareholders		—			(493,733	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		16,194,054			60,791,910
A-Class		997,752			13,521,729
C-Class		662,638			1,838,738
H-Class		3,170,373			53,900,702
Distributions reinvested
Investor Class		—			302,395
A-Class		—			100,455
C-Class		—			53,020
H-Class		—			22,649
Cost of shares redeemed
Investor Class		(20,234,427	)		(84,799,935	)
A-Class		(1,104,244	)		(15,127,115	)
C-Class		(1,161,456	)		(4,248,363	)
H-Class		(3,321,639	)		(61,389,310	)
Net decrease from capital share transactions		(4,796,949	)		(35,033,125	)
Net decrease in net assets		(4,499,575	)		(37,504,458	)
Net assets:
Beginning of period		37,868,132			75,372,590
End of period	$	33,368,557		$	37,868,132
Capital share activity:
Shares sold
Investor Class		274,940			1,043,944
A-Class		18,257			242,632
C-Class		13,839			36,405
H-Class		61,948			980,871
Shares issued from reinvestment of distributions
Investor Class		—			5,738
A-Class		—			2,037
C-Class		—			1,219
H-Class		—			474
Shares redeemed
Investor Class		(346,671	)		(1,444,031	)
A-Class		(20,245	)		(279,290	)
C-Class		(24,305	)		(85,424	)
H-Class		(63,812	)		(1,122,063	)
Net decrease in shares		(86,049	)		(617,488	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	58.04		$	60.37		$	55.71		$	45.18		$	50.18		$	52.53
Income (loss) from investment operations:
Net investment income (loss)b		.24			.35			.11			.18			.26			.29
Net gain (loss) on investments (realized and unrealized)		.45			(1.85	)		4.80			10.92			(4.39	)		(2.26	)
Total from investment operations		.69			(1.50	)		4.91			11.10			(4.13	)		(1.97	)
Less distributions from:
Net investment income		—			(.24	)		(.25	)		(.57	)		(.87	)		(.38	)
Net realized gains		—			(.59	)		—			—			—			—
Total distributions		—			(.83	)		(.25	)		(.57	)		(.87	)		(.38	)
Net asset value, end of period	$	58.73		$	58.04		$	60.37		$	55.71		$	45.18		$	50.18
Total Return		1.19	%		(2.36	%)		8.81	%		24.65	%		(8.07	%)		(3.77	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,809		$	26,704		$	51,589		$	56,854		$	30,653		$	46,509
Ratios to average net assets:
Net investment income (loss)		0.83	%		0.59	%		0.18	%		0.35	%		0.55	%		0.56	%
Total expenses		1.46	%		1.47	%		1.38	%		1.37	%		1.35	%		1.34	%
Portfolio turnover rate		37	%		247	%		257	%		361	%		471	%		358	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	54.27		$	56.66		$	52.42		$	42.65		$	47.54		$	49.93
Income (loss) from investment operations:
Net investment income (loss)b		.16			.25			(.01	)		.03			.10			.13
Net gain (loss) on investments (realized and unrealized)		.42			(1.81	)		4.50			10.31			(4.12	)		(2.14	)
Total from investment operations		.58			(1.56	)		4.49			10.34			(4.02	)		(2.01	)
Less distributions from:
Net investment income		—			(.24	)		(.25	)		(.57	)		(.87	)		(.38	)
Net realized gains		—			(.59	)		—			—			—			—
Total distributions		—			(.83	)		(.25	)		(.57	)		(.87	)		(.38	)
Net asset value, end of period	$	54.85		$	54.27		$	56.66		$	52.42		$	42.65		$	47.54
Total Returnc		1.07	%		(2.60	%)		8.56	%		24.33	%		(8.29	%)		(4.05	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,773		$	6,810		$	9,070		$	16,355		$	4,152		$	6,194
Ratios to average net assets:
Net investment income (loss)		0.60	%		0.45	%		(0.02	%)		0.06	%		0.24	%		0.27	%
Total expenses		1.71	%		1.72	%		1.63	%		1.62	%		1.60	%		1.60	%
Portfolio turnover rate		37	%		247	%		257	%		361	%		471	%		358	%

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

BASIC MATERIALS 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	47.73		$	50.32		$	46.93		$	38.52		$	43.36		$	45.91
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.21	)		(.38	)		(.29	)		(.17	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		.37			(1.55	)		4.02			9.27			(3.80	)		(1.94	)
Total from investment operations		.33			(1.76	)		3.64			8.98			(3.97	)		(2.17	)
Less distributions from:
Net investment income		—			(.24	)		(.25	)		(.57	)		(.87	)		(.38	)
Net realized gains		—			(.59	)		—			—			—			—
Total distributions		—			(.83	)		(.25	)		(.57	)		(.87	)		(.38	)
Net asset value, end of period	$	48.06		$	47.73		$	50.32		$	46.93		$	38.52		$	43.36
Total Returnc		0.69	%		(3.35	%)		7.75	%		23.41	%		(8.98	%)		(4.76	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,447		$	2,930		$	5,494		$	5,824		$	2,430		$	3,133
Ratios to average net assets:
Net investment income (loss)		(0.15	%)		(0.42	%)		(0.75	%)		(0.66	%)		(0.43	%)		(0.49	%)
Total expenses		2.46	%		2.47	%		2.38	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		37	%		247	%		257	%		361	%		471	%		358	%

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

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.

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	52.62		$	54.95		$	50.84		$	41.37		$	46.19		$	48.64
Income (loss) from investment operations:
Net investment income (loss)b		.15			.12			(.05	)		.01			.09			—	d
Net gain (loss) on investments (realized and unrealized)		.40			(1.62	)		4.41			10.03			(4.04	)		(2.07	)
Total from investment operations		.55			(1.50	)		4.36			10.04			(3.95	)		(2.07	)
Less distributions from:
Net investment income		—			(.24	)		(.25	)		(.57	)		(.87	)		(.38	)
Net realized gains		—			(.59	)		—			—			—			—
Total distributions		—			(.83	)		(.25	)		(.57	)		(.87	)		(.38	)
Net asset value, end of period	$	53.17		$	52.62		$	54.95		$	50.84		$	41.37		$	46.19
Total Return		1.05	%		(2.59	%)		8.57	%		24.36	%		(8.36	%)		(4.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,340		$	1,424		$	9,220		$	8,077		$	2,612		$	2,073
Ratios to average net assets:
Net investment income (loss)		0.57	%		0.21	%		(0.09	%)		0.03	%		0.24	%		—	f
Total expenses		1.71	%		1.71	%		1.62	%		1.62	%		1.64	%		1.85	%
Portfolio turnover rate		37	%		247	%		257	%		361	%		471	%		358	%

a	Unaudited figures for the period ended September 30, 2019. 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.
f	Less than 0.01%.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
AbbVie, Inc.	7.5%
Amgen, Inc.	7.4%
Gilead Sciences, Inc.	6.1%
Celgene Corp.	5.8%
Illumina, Inc.	4.6%
Vertex Pharmaceuticals, Inc.	4.6%
Biogen, Inc.	4.5%
Regeneron Pharmaceuticals, Inc.	3.8%
Alexion Pharmaceuticals, Inc.	3.2%
Seattle Genetics, Inc.	2.8%
Top Ten Total	50.3%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	(11.83%)	(15.07%)	3.82%	13.90%
A-Class Shares	(11.93%)	(15.28%)	3.56%	13.62%
A-Class Shares with sales charge‡	(16.11%)	(19.31%)	2.55%	13.07%
C-Class Shares	(12.26%)	(15.91%)	2.78%	12.78%
C-Class Shares with CDSC§	(13.14%)	(16.63%)	2.78%	12.78%
H-Class Shares**	(11.93%)	(15.29%)	3.51%	13.45%
S&P 500 Health Care Index	(0.90%)	(3.57%)	8.95%	14.21%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 25

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
BIOTECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.9%
Biotechnology - 74.4%
Amgen, Inc.		64,828	$	12,544,866
Gilead Sciences, Inc.		162,729		10,313,764
Celgene Corp.*		98,937		9,824,444
Illumina, Inc.*		25,553		7,773,734
Vertex Pharmaceuticals, Inc.*		45,368		7,686,246
Biogen, Inc.*		32,777		7,631,141
Regeneron Pharmaceuticals, Inc.*		23,018		6,385,193
Alexion Pharmaceuticals, Inc.*		54,878		5,374,751
Seattle Genetics, Inc.*		55,888		4,772,835
Incyte Corp.*		61,182		4,541,540
BioMarin Pharmaceutical, Inc.*		56,719		3,822,861
Exact Sciences Corp.*,1		41,240		3,726,859
Alnylam Pharmaceuticals, Inc.*		42,430		3,412,221
Ionis Pharmaceuticals, Inc.*		56,368		3,377,007
Sage Therapeutics, Inc.*		20,116		2,822,074
Exelixis, Inc.*		143,088		2,530,511
ACADIA Pharmaceuticals, Inc.*		70,269		2,528,981
Bluebird Bio, Inc.*,1		26,900		2,469,958
Medicines Co.*		48,486		2,424,300
Spark Therapeutics, Inc.*		23,036		2,234,031
United Therapeutics Corp.*		26,016		2,074,776
FibroGen, Inc.*		55,217		2,041,925
Nektar Therapeutics*		111,741		2,035,362
Amarin Corporation plc ADR*,1		127,480		1,932,597
Ultragenyx Pharmaceutical, Inc.*		42,700		1,826,706
Intercept Pharmaceuticals, Inc.*,1		25,749		1,708,704
Myriad Genetics, Inc.*		59,463		1,702,426
Immunomedics, Inc.*		123,406		1,636,363
PTC Therapeutics, Inc.*		47,670		1,612,199
Ligand Pharmaceuticals, Inc. — Class B*		15,581		1,550,933
REGENXBIO, Inc.*		35,520		1,264,512
Total Biotechnology				125,583,820
Pharmaceuticals - 22.0%
AbbVie, Inc.		167,273		12,665,911
Mylan N.V.*		186,140		3,681,849
Neurocrine Biosciences, Inc.*		34,569		3,115,013
PRA Health Sciences, Inc.*		28,790		2,856,832
Sarepta Therapeutics, Inc.*		35,008		2,636,803
Jazz Pharmaceuticals plc*		18,095		2,318,693
Global Blood Therapeutics, Inc.*		39,203		1,902,130
Alkermes plc*		86,740		1,692,297
Portola Pharmaceuticals, Inc.*,1		59,290		1,590,158
Agios Pharmaceuticals, Inc.*,1		47,498		1,538,935
Heron Therapeutics, Inc.*		73,120		1,352,720
Madrigal Pharmaceuticals, Inc.*		14,450		1,245,879
Clovis Oncology, Inc.*,1		130,530		512,983
Total Pharmaceuticals				37,110,203
Healthcare-Products - 1.9%
Bio-Techne Corp.		16,398		3,208,597
Healthcare-Services - 1.6%
Syneos Health, Inc.*		50,860		2,706,260
Total Common Stocks
(Cost $88,783,107)				168,608,880
RIGHTS††† - 0.0%
Biotechnology – 0.0%
Clinical Data, Inc.*,2		24,000		—
Total Rights
(Cost $—)				—
	Face Amount
REPURCHASE AGREEMENTS††,3 - 0.7%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	710,572		710,572
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		228,496		228,496
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		205,647		205,647
Total Repurchase Agreements
(Cost $1,144,715)				1,144,715
	Shares
SECURITIES LENDING COLLATERAL†,4 - 4.8%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%5		8,153,730		8,153,730
Total Securities Lending Collateral
(Cost $8,153,730)				8,153,730
Total Investments - 105.4%
(Cost $98,081,552)			$	177,907,325
Other Assets & Liabilities, net - (5.4%)				(9,040,200	)
Total Net Assets - 100.0%			$	168,867,125

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
BIOTECHNOLOGY FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Security was fair valued by the Valuation Committee at September 30, 2019. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
3	Repurchase Agreements — See Note 6.
4	Securities lending collateral — See Note 7.
5	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	168,608,880	$	—	$	—		$	168,608,880
Rights		—		—		—	*		—
Repurchase Agreements		—		1,144,715		—			1,144,715
Securities Lending Collateral		8,153,730		—		—			8,153,730
Total Assets	$	176,762,610	$	1,144,715	$	—		$	177,907,325

^* Security has a market value of $0.

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

BIOTECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $7,865,907 of securities loaned (cost $96,936,837)	$	176,762,610
Repurchase agreements, at value (cost $1,144,715)		1,144,715
Receivables:
Fund shares sold		5,656
Securities lending income		1,069
Interest		73
Total assets		177,914,123
Liabilities:
Payable for:
Return of securities lending collateral		8,153,730
Fund shares redeemed		526,307
Management fees		113,902
Transfer agent and administrative fees		33,501
Portfolio accounting fees		13,400
Distribution and service fees		13,397
Trustees’ fees*		3,625
Miscellaneous		189,136
Total liabilities		9,046,998
Commitments and contingent liabilities (Note 9)		—
Net assets	$	168,867,125
Net assets consist of:
Paid in capital	$	78,252,654
Total distributable earnings (loss)		90,614,471
Net assets	$	168,867,125
Investor Class:
Net assets	$	132,343,259
Capital shares outstanding		1,808,019
Net asset value per share	$	73.20
A-Class:
Net assets	$	17,304,030
Capital shares outstanding		259,722
Net asset value per share	$	66.63
Maximum offering price per share (Net asset value divided by 95.25%)	$	69.95
C-Class:
Net assets	$	9,759,244
Capital shares outstanding		168,421
Net asset value per share	$	57.95
H-Class:
Net assets	$	9,460,592
Capital shares outstanding		146,788
Net asset value per share	$	64.45

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	835,468
Interest		10,340
Income from securities lending, net		3,047
Total investment income		848,855
Expenses:
Management fees		823,766
Distribution and service fees:
A-Class		25,050
C-Class		59,886
H-Class		14,106
Transfer agent and administrative fees		242,284
Portfolio accounting fees		96,913
Registration fees		95,157
Trustees’ fees*		25,131
Custodian fees		13,796
Line of credit fees		71
Miscellaneous		120,066
Total expenses		1,516,226
Net investment loss		(667,371	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		16,262,719
Net realized gain		16,262,719
Net change in unrealized appreciation (depreciation) on:
Investments		(40,576,774	)
Net change in unrealized appreciation (depreciation)		(40,576,774	)
Net realized and unrealized loss		(24,314,055	)
Net decrease in net assets resulting from operations	$	(24,981,426	)

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

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

BIOTECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(667,371	)	$	(2,323,341	)
Net realized gain on investments		16,262,719			20,676,333
Net change in unrealized appreciation (depreciation) on investments		(40,576,774	)		(2,119,169	)
Net increase (decrease) in net assets resulting from operations		(24,981,426	)		16,233,823
Distributions to shareholders:
Investor Class		—			(20,899,598	)
A-Class		—			(2,845,408	)
C-Class		—			(2,017,464	)
H-Class		—			(1,678,559	)
Total distributions to shareholders		—			(27,441,029	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		28,488,735			175,638,002
A-Class		1,441,401			9,604,414
C-Class		707,538			3,143,702
H-Class		9,881,415			92,660,528
Distributions reinvested
Investor Class		—			19,858,630
A-Class		—			2,754,996
C-Class		—			1,958,952
H-Class		—			1,677,352
Cost of shares redeemed
Investor Class		(54,105,984	)		(220,835,959	)
A-Class		(4,753,571	)		(15,320,741	)
C-Class		(3,593,982	)		(10,075,316	)
H-Class		(12,322,031	)		(99,694,575	)
Net decrease from capital share transactions		(34,256,479	)		(38,630,015	)
Net decrease in net assets		(59,237,905	)		(49,837,221	)
Net assets:
Beginning of period		228,105,030			277,942,251
End of period	$	168,867,125		$	228,105,030
Capital share activity:
Shares sold
Investor Class		368,355			1,962,897
A-Class		20,309			117,041
C-Class		11,455			43,301
H-Class		143,899			1,191,990
Shares issued from reinvestment of distributions
Investor Class		—			267,817
A-Class		—			40,736
C-Class		—			33,107
H-Class		—			25,640
Shares redeemed
Investor Class		(696,622	)		(2,509,948	)
A-Class		(67,214	)		(190,944	)
C-Class		(58,752	)		(139,375	)
H-Class		(179,048	)		(1,290,035	)
Net decrease in shares		(457,618	)		(447,773	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	83.02		$	87.17		$	79.72		$	68.30		$	93.63		$	68.47
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.68	)		(.62	)		(.57	)		(.75	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		(9.59	)		6.42			12.77			11.99			(23.30	)		28.59
Total from investment operations		(9.82	)		5.74			12.15			11.42			(24.05	)		28.32
Less distributions from:
Net realized gains		—			(9.89	)		(4.70	)		—			(1.28	)		(3.16	)
Total distributions		—			(9.89	)		(4.70	)		—			(1.28	)		(3.16	)
Net asset value, end of period	$	73.20		$	83.02		$	87.17		$	79.72		$	68.30		$	93.63
Total Return		(11.83	%)		7.94	%		15.34	%		16.71	%		(25.98	%)		42.19	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	132,343		$	177,344		$	210,564		$	238,614		$	260,476		$	498,068
Ratios to average net assets:
Net investment income (loss)		(0.59	%)		(0.79	%)		(0.70	%)		(0.76	%)		(0.84	%)		(0.34	%)
Total expenses		1.46	%		1.46	%		1.37	%		1.37	%		1.32	%		1.33	%
Portfolio turnover rate		14	%		100	%		105	%		207	%		83	%		107	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	75.66		$	80.55		$	74.16		$	63.69		$	87.63		$	64.41
Income (loss) from investment operations:
Net investment income (loss)b		(.29	)		(.82	)		(.76	)		(.70	)		(.91	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		(8.74	)		5.82			11.85			11.17			(21.75	)		26.82
Total from investment operations		(9.03	)		5.00			11.09			10.47			(22.66	)		26.38
Less distributions from:
Net realized gains		—			(9.89	)		(4.70	)		—			(1.28	)		(3.16	)
Total distributions		—			(9.89	)		(4.70	)		—			(1.28	)		(3.16	)
Net asset value, end of period	$	66.63		$	75.66		$	80.55		$	74.16		$	63.69		$	87.63
Total Returnc		(11.93	%)		7.68	%		15.04	%		16.42	%		(26.17	%)		41.83	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,304		$	23,199		$	27,370		$	36,849		$	48,672		$	89,260
Ratios to average net assets:
Net investment income (loss)		(0.83	%)		(1.04	%)		(0.93	%)		(1.01	%)		(1.09	%)		(0.59	%)
Total expenses		1.71	%		1.71	%		1.62	%		1.61	%		1.57	%		1.58	%
Portfolio turnover rate		14	%		100	%		105	%		207	%		83	%		107	%

30 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	66.05		$	72.14		$	67.34		$	58.27		$	80.88		$	60.10
Income (loss) from investment operations:
Net investment income (loss)b		(.49	)		(1.27	)		(1.25	)		(1.11	)		(1.40	)		(.92	)
Net gain (loss) on investments (realized and unrealized)		(7.61	)		5.07			10.75			10.18			(19.93	)		24.86
Total from investment operations		(8.10	)		3.80			9.50			9.07			(21.33	)		23.94
Less distributions from:
Net realized gains		—			(9.89	)		(4.70	)		—			(1.28	)		(3.16	)
Total distributions		—			(9.89	)		(4.70	)		—			(1.28	)		(3.16	)
Net asset value, end of period	$	57.95		$	66.05		$	72.14		$	67.34		$	58.27		$	80.88
Total Returnc		(12.26	%)		6.87	%		14.18	%		15.55	%		(26.72	%)		40.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,759		$	14,248		$	20,104		$	20,997		$	26,185		$	41,424
Ratios to average net assets:
Net investment income (loss)		(1.59	%)		(1.79	%)		(1.70	%)		(1.76	%)		(1.84	%)		(1.34	%)
Total expenses		2.46	%		2.46	%		2.37	%		2.36	%		2.33	%		2.33	%
Portfolio turnover rate		14	%		100	%		105	%		207	%		83	%		107	%

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	73.18		$	78.26		$	72.16		$	62.00		$	85.38		$	62.98
Income (loss) from investment operations:
Net investment income (loss)b		(.29	)		(.82	)		(.69	)		(.70	)		(.96	)		(.61	)
Net gain (loss) on investments (realized and unrealized)		(8.44	)		5.63			11.49			10.86			(21.14	)		26.17
Total from investment operations		(8.73	)		4.81			10.80			10.16			(22.10	)		25.56
Less distributions from:
Net realized gains		—			(9.89	)		(4.70	)		—			(1.28	)		(3.16	)
Total distributions		—			(9.89	)		(4.70	)		—			(1.28	)		(3.16	)
Net asset value, end of period	$	64.45		$	73.18		$	78.26		$	72.16		$	62.00		$	85.38
Total Return		(11.93	%)		7.66	%		15.04	%		16.39	%		(26.22	%)		41.49	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,461		$	13,315		$	19,905		$	19,308		$	27,346		$	63,196
Ratios to average net assets:
Net investment income (loss)		(0.85	%)		(1.06	%)		(0.87	%)		(1.04	%)		(1.17	%)		(0.84	%)
Total expenses		1.71	%		1.71	%		1.62	%		1.61	%		1.65	%		1.83	%
Portfolio turnover rate		14	%		100	%		105	%		207	%		83	%		107	%

a	Unaudited figures for the period ended September 30, 2019. 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 NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 31

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.	6.9%
Coca-Cola Co.	5.9%
PepsiCo, Inc.	5.4%
Philip Morris International, Inc.	4.4%
Mondelez International, Inc. — Class A	3.5%
Estee Lauder Companies, Inc. — Class A	3.4%
Colgate-Palmolive Co.	3.1%
Altria Group, Inc.	2.8%
Kimberly-Clark Corp.	2.8%
Sysco Corp.	2.5%
Top Ten Total	40.7%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	6.09%	9.69%	6.91%	11.53%
A-Class Shares	5.98%	9.42%	6.64%	11.26%
A-Class Shares with sales charge‡	0.95%	4.23%	5.60%	10.72%
C-Class Shares	5.57%	8.62%	5.84%	10.43%
C-Class Shares with CDSC§	4.57%	7.62%	5.84%	10.43%
H-Class Shares**	5.97%	9.43%	6.59%	11.09%
S&P 500 Consumer Staples Index	10.06%	16.85%	9.26%	12.29%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and S&P 500 Consumer Staples Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

32 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
CONSUMER PRODUCTS FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Food - 38.9%
Mondelez International, Inc. — Class A		110,532	$	6,114,630
Sysco Corp.		55,296		4,390,502
Kraft Heinz Co.		147,405		4,117,759
General Mills, Inc.		72,563		3,999,673
Hershey Co.		25,074		3,886,219
Tyson Foods, Inc. — Class A		43,741		3,767,850
Hormel Foods Corp.		76,785		3,357,808
Kellogg Co.		50,485		3,248,710
Kroger Co.		121,793		3,139,824
McCormick & Company, Inc.		19,738		3,085,049
Conagra Brands, Inc.		90,299		2,770,373
Campbell Soup Co.		55,532		2,605,561
JM Smucker Co.		22,244		2,447,285
Lamb Weston Holdings, Inc.		30,530		2,220,142
Beyond Meat, Inc.*		13,970		2,076,221
US Foods Holding Corp.*		48,770		2,004,447
Pilgrim’s Pride Corp.*		61,520		1,971,408
Post Holdings, Inc.*		18,397		1,947,138
Ingredion, Inc.		19,605		1,602,513
Flowers Foods, Inc.		66,182		1,530,790
Performance Food Group Co.*		32,799		1,509,082
Lancaster Colony Corp.		9,511		1,318,700
Sanderson Farms, Inc.		8,214		1,243,025
TreeHouse Foods, Inc.*		22,192		1,230,546
Hain Celestial Group, Inc.*		49,650		1,066,234
Sprouts Farmers Market, Inc.*		54,791		1,059,658
Cal-Maine Foods, Inc.		23,341		932,590
Total Food				68,643,737
Beverages - 24.9%
Coca-Cola Co.		192,633		10,486,941
PepsiCo, Inc.		69,972		9,593,161
Constellation Brands, Inc. — Class A		20,843		4,320,337
Keurig Dr Pepper, Inc.		154,906		4,232,032
Monster Beverage Corp.*		66,690		3,872,021
Brown-Forman Corp. — Class B		59,614		3,742,567
Molson Coors Brewing Co. — Class B		44,321		2,548,458
Anheuser-Busch InBev S.A. ADR		20,032		1,906,045
Coca-Cola European Partners plc		31,694		1,757,432
Fomento Economico Mexicano SAB de CV ADR		14,683		1,344,669
Total Beverages				43,803,663
Cosmetics & Personal Care - 14.8%
Procter & Gamble Co.		97,946		12,182,524
Estee Lauder Companies, Inc. — Class A		29,798		5,928,312
Colgate-Palmolive Co.		75,079		5,519,057
Unilever N.V. — Class Y		25,236		1,514,917
Edgewell Personal Care Co.*		31,000		1,007,190
Total Cosmetics & Personal Care				26,152,000
Agriculture - 11.1%
Philip Morris International, Inc.		102,502		7,782,977
Altria Group, Inc.		122,135		4,995,322
Archer-Daniels-Midland Co.		81,518		3,347,944
Bunge Ltd.		35,003		1,981,870
British American Tobacco plc ADR		41,138		1,517,992
Total Agriculture				19,626,105
Household Products & Housewares - 6.8%
Kimberly-Clark Corp.		34,236		4,863,224
Church & Dwight Company, Inc.		40,109		3,017,801
Clorox Co.		19,580		2,973,614
Spectrum Brands Holdings, Inc.		22,340		1,177,765
Total Household Products & Housewares				12,032,404
Retail - 0.9%
Casey’s General Stores, Inc.		10,252		1,652,212
Pharmaceuticals - 0.9%
Herbalife Nutrition Ltd.*		42,650		1,614,729
Electrical Components & Equipment - 0.7%
Energizer Holdings, Inc.1		28,805		1,255,322
Commercial Services - 0.4%
Medifast, Inc.		7,180		744,063
Total Common Stocks
(Cost $107,886,271)				175,524,235
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	722,734		722,734
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		232,407		232,407
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		209,166		209,166
Total Repurchase Agreements
(Cost $1,164,307)				1,164,307

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
CONSUMER PRODUCTS FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,3 - 0.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		280,035	$	280,035
Total Securities Lending Collateral
(Cost $280,035)				280,035
Total Investments - 100.3%
(Cost $109,330,613)			$	176,968,577
Other Assets & Liabilities, net - (0.3%)				(521,925	)
Total Net Assets - 100.0%			$	176,446,652

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	175,524,235	$	—	$	—	$	175,524,235
Repurchase Agreements		—		1,164,307		—		1,164,307
Securities Lending Collateral		280,035		—		—		280,035
Total Assets	$	175,804,270	$	1,164,307	$	—	$	176,968,577

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

CONSUMER PRODUCTS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $271,198 of securities loaned (cost $108,166,306)	$	175,804,270
Repurchase agreements, at value (cost $1,164,307)		1,164,307
Receivables:
Fund shares sold		7,014,235
Dividends		382,455
Foreign tax reclaims		16,717
Securities lending income		202
Interest		73
Total assets		184,382,259
Liabilities:
Payable for:
Securities purchased		7,121,021
Return of securities lending collateral		280,035
Fund shares redeemed		202,938
Management fees		107,349
Transfer agent and administrative fees		31,573
Distribution and service fees		14,348
Portfolio accounting fees		12,629
Trustees’ fees*		3,111
Miscellaneous		162,603
Total liabilities		7,935,607
Commitments and contingent liabilities (Note 9)		—
Net assets	$	176,446,652
Net assets consist of:
Paid in capital	$	114,435,163
Total distributable earnings (loss)		62,011,489
Net assets	$	176,446,652
Investor Class:
Net assets	$	141,435,475
Capital shares outstanding		2,238,207
Net asset value per share	$	63.19
A-Class:
Net assets	$	12,028,699
Capital shares outstanding		209,381
Net asset value per share	$	57.45
Maximum offering price per share (Net asset value divided by 95.25%)	$	60.31
C-Class:
Net assets	$	13,079,253
Capital shares outstanding		269,462
Net asset value per share	$	48.54
H-Class:
Net assets	$	9,903,225
Capital shares outstanding		179,481
Net asset value per share	$	55.18

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	2,145,239
Interest		9,723
Income from securities lending, net		2,158
Total investment income		2,157,120
Expenses:
Management fees		707,911
Distribution and service fees:
A-Class		16,607
C-Class		68,664
H-Class		14,044
Transfer agent and administrative fees		208,208
Portfolio accounting fees		83,283
Registration fees		72,615
Trustees’ fees*		20,424
Custodian fees		11,768
Line of credit fees		115
Miscellaneous		113,312
Total expenses		1,316,951
Net investment income		840,169
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,594,193
Net realized gain		1,594,193
Net change in unrealized appreciation (depreciation) on:
Investments		6,617,889
Net change in unrealized appreciation (depreciation)		6,617,889
Net realized and unrealized gain		8,212,082
Net increase in net assets resulting from operations	$	9,052,251

^* 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 | 35

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	840,169		$	2,388,987
Net realized gain on investments		1,594,193			8,964,531
Net change in unrealized appreciation (depreciation) on investments		6,617,889			(5,695,254	)
Net increase in net assets resulting from operations		9,052,251			5,658,264
Distributions to shareholders:
Investor Class		—			(7,795,828	)
A-Class		—			(1,054,007	)
C-Class		—			(1,332,532	)
H-Class		—			(1,079,571	)
Total distributions to shareholders		—			(11,261,938	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		83,182,491			126,325,719
A-Class		2,461,833			8,189,512
C-Class		344,514			2,366,920
H-Class		12,458,890			45,048,235
Distributions reinvested
Investor Class		—			7,631,394
A-Class		—			1,010,234
C-Class		—			1,233,939
H-Class		—			1,079,166
Cost of shares redeemed
Investor Class		(91,423,513	)		(141,637,774	)
A-Class		(4,839,729	)		(20,049,184	)
C-Class		(2,982,554	)		(11,139,212	)
H-Class		(13,193,867	)		(45,804,251	)
Net decrease from capital share transactions		(13,991,935	)		(25,745,302	)
Net decrease in net assets		(4,939,684	)		(31,348,976	)
Net assets:
Beginning of period		181,386,336			212,735,312
End of period	$	176,446,652		$	181,386,336
Capital share activity:
Shares sold
Investor Class		1,357,634			2,148,163
A-Class		44,229			149,654
C-Class		7,300			50,365
H-Class		235,930			869,311
Shares issued from reinvestment of distributions
Investor Class		—			133,743
A-Class		—			19,435
C-Class		—			27,930
H-Class		—			21,618
Shares redeemed
Investor Class		(1,514,317	)		(2,387,261	)
A-Class		(86,803	)		(375,382	)
C-Class		(63,573	)		(237,726	)
H-Class		(250,773	)		(896,322	)
Net decrease in shares		(270,373	)		(476,472	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	59.56		$	61.08		$	66.06		$	62.84		$	58.55		$	52.08
Income (loss) from investment operations:
Net investment income (loss)b		.35			.92			.56			.51			.61			.71
Net gain (loss) on investments (realized and unrealized)		3.28			1.40			(.37	)		3.58			4.92			6.44
Total from investment operations		3.63			2.32			.19			4.09			5.53			7.15
Less distributions from:
Net investment income		—			(.80	)		(.44	)		(.58	)		(.49	)		(.24	)
Net realized gains		—			(3.04	)		(4.73	)		(.29	)		(.75	)		(.44	)
Total distributions		—			(3.84	)		(5.17	)		(.87	)		(1.24	)		(.68	)
Net asset value, end of period	$	63.19		$	59.56		$	61.08		$	66.06		$	62.84		$	58.55
Total Return		6.09	%		4.09	%		(0.04	%)		6.62	%		9.65	%		13.77	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	141,435		$	142,633		$	152,717		$	207,683		$	276,578		$	222,954
Ratios to average net assets:
Net investment income (loss)		1.14	%		1.56	%		0.86	%		0.79	%		1.03	%		1.27	%
Total expenses		1.46	%		1.46	%		1.38	%		1.36	%		1.34	%		1.34	%
Portfolio turnover rate		44	%		84	%		80	%		75	%		104	%		87	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	54.21		$	56.08		$	61.21		$	58.43		$	54.66		$	48.79
Income (loss) from investment operations:
Net investment income (loss)b		.24			.69			.36			.33			.45			.48
Net gain (loss) on investments (realized and unrealized)		3.00			1.28			(.32	)		3.32			4.56			6.07
Total from investment operations		3.24			1.97			.04			3.65			5.01			6.55
Less distributions from:
Net investment income		—			(.80	)		(.44	)		(.58	)		(.49	)		(.24	)
Net realized gains		—			(3.04	)		(4.73	)		(.29	)		(.75	)		(.44	)
Total distributions		—			(3.84	)		(5.17	)		(.87	)		(1.24	)		(.68	)
Net asset value, end of period	$	57.45		$	54.21		$	56.08		$	61.21		$	58.43		$	54.66
Total Returnc		5.98	%		3.82	%		(0.28	%)		6.35	%		9.38	%		13.47	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,029		$	13,659		$	25,698		$	40,272		$	53,560		$	32,762
Ratios to average net assets:
Net investment income (loss)		0.86	%		1.28	%		0.60	%		0.56	%		0.82	%		0.92	%
Total expenses		1.71	%		1.71	%		1.63	%		1.62	%		1.60	%		1.60	%
Portfolio turnover rate		44	%		84	%		80	%		75	%		104	%		87	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	45.98		$	48.50		$	54.00		$	52.04		$	49.18		$	44.29
Income (loss) from investment operations:
Net investment income (loss)b		.02			.28			(.07	)		(.10	)		.03			.09
Net gain (loss) on investments (realized and unrealized)		2.54			1.04			(.26	)		2.93			4.07			5.48
Total from investment operations		2.56			1.32			(.33	)		2.83			4.10			5.57
Less distributions from:
Net investment income		—			(.80	)		(.44	)		(.58	)		(.49	)		(.24	)
Net realized gains		—			(3.04	)		(4.73	)		(.29	)		(.75	)		(.44	)
Total distributions		—			(3.84	)		(5.17	)		(.87	)		(1.24	)		(.68	)
Net asset value, end of period	$	48.54		$	45.98		$	48.50		$	54.00		$	52.04		$	49.18
Total Returnc		5.57	%		3.06	%		(1.02	%)		5.55	%		8.57	%		12.62	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,079		$	14,976		$	23,531		$	28,380		$	23,799		$	17,717
Ratios to average net assets:
Net investment income (loss)		0.10	%		0.60	%		(0.13	%)		(0.20	%)		0.05	%		0.20	%
Total expenses		2.46	%		2.46	%		2.38	%		2.36	%		2.35	%		2.35	%
Portfolio turnover rate		44	%		84	%		80	%		75	%		104	%		87	%

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	52.07		$	54.02		$	59.15		$	56.50		$	52.94		$	47.39
Income (loss) from investment operations:
Net investment income (loss)b		.22			.69			.38			.31			.39			.37
Net gain (loss) on investments (realized and unrealized)		2.89			1.20			(.34	)		3.21			4.41			5.86
Total from investment operations		3.11			1.89			.04			3.52			4.80			6.23
Less distributions from:
Net investment income		—			(.80	)		(.44	)		(.58	)		(.49	)		(.24	)
Net realized gains		—			(3.04	)		(4.73	)		(.29	)		(.75	)		(.44	)
Total distributions		—			(3.84	)		(5.17	)		(.87	)		(1.24	)		(.68	)
Net asset value, end of period	$	55.18		$	52.07		$	54.02		$	59.15		$	56.50		$	52.94
Total Return		5.97	%		3.84	%		(0.32	%)		6.35	%		9.29	%		13.19	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,903		$	10,118		$	10,788		$	35,387		$	65,702		$	49,751
Ratios to average net assets:
Net investment income (loss)		0.83	%		1.32	%		0.65	%		0.54	%		0.72	%		0.74	%
Total expenses		1.71	%		1.71	%		1.63	%		1.61	%		1.66	%		1.85	%
Portfolio turnover rate		44	%		84	%		80	%		75	%		104	%		87	%

a	Unaudited figures for the period ended September 30, 2019. 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 prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.	8.0%
Texas Instruments, Inc.	5.8%
NVIDIA Corp.	5.4%
Broadcom, Inc.	5.4%
QUALCOMM, Inc.	5.0%
Applied Materials, Inc.	3.5%
Micron Technology, Inc.	3.3%
Analog Devices, Inc.	3.3%
Lam Research Corp.	3.0%
Advanced Micro Devices, Inc.	2.9%
Top Ten Total	45.6%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	12.26%	14.63%	15.80%	12.58%
A-Class Shares	12.12%	14.34%	15.52%	12.30%
A-Class Shares with sales charge‡	6.79%	8.91%	14.41%	11.76%
C-Class Shares	11.70%	13.49%	14.66%	11.46%
C-Class Shares with CDSC§	10.70%	12.49%	14.66%	11.46%
H-Class Shares**	12.10%	14.33%	15.45%	12.12%
S&P 500 Information Technology Index	9.60%	8.60%	18.21%	17.11%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 39

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
ELECTRONICS FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Semiconductors - 92.6%
Intel Corp.		89,518	$	4,612,863
Texas Instruments, Inc.		25,770		3,330,515
NVIDIA Corp.		17,969		3,127,864
Broadcom, Inc.		11,198		3,091,432
QUALCOMM, Inc.		37,648		2,871,789
Applied Materials, Inc.		40,393		2,015,611
Micron Technology, Inc.*		45,084		1,931,849
Analog Devices, Inc.		17,178		1,919,298
Lam Research Corp.		7,459		1,723,849
Advanced Micro Devices, Inc.*		58,111		1,684,638
NXP Semiconductor N.V.		13,965		1,523,861
KLA Corp.		9,475		1,510,789
Xilinx, Inc.		14,993		1,437,829
Microchip Technology, Inc.		15,467		1,437,039
Marvell Technology Group Ltd.		48,681		1,215,565
Maxim Integrated Products, Inc.		20,700		1,198,737
Taiwan Semiconductor Manufacturing Company Ltd. ADR		25,607		1,190,213
Skyworks Solutions, Inc.		14,308		1,133,909
Teradyne, Inc.		16,199		938,084
Qorvo, Inc.*		12,073		895,092
Cypress Semiconductor Corp.		38,312		894,202
ON Semiconductor Corp.*		44,340		851,771
ASML Holding N.V. — Class G		3,378		839,163
Monolithic Power Systems, Inc.		5,070		789,044
Entegris, Inc.		16,168		760,866
Mellanox Technologies Ltd.*		6,822		747,623
Cree, Inc.*		13,971		684,579
Silicon Motion Technology Corp. ADR		19,244		680,275
MKS Instruments, Inc.		7,271		670,968
Silicon Laboratories, Inc.*		5,930		660,306
STMicroelectronics N.V. — Class Y1		33,627		650,346
Kulicke & Soffa Industries, Inc.		26,809		629,475
Cabot Microelectronics Corp.		4,251		600,284
Semtech Corp.*		11,450		556,585
Cirrus Logic, Inc.*		9,925		531,782
Inphi Corp.*		8,122		495,848
Power Integrations, Inc.		5,482		495,737
Brooks Automation, Inc.		12,648		468,355
Lattice Semiconductor Corp.*		25,170		460,233
Diodes, Inc.*		10,919		438,398
Ambarella, Inc.*		6,858		430,922
MACOM Technology Solutions Holdings, Inc.*		16,752		360,084
Synaptics, Inc.*		9,001		359,590
Xperi Corp.		15,050		311,234
Nanometrics, Inc.*		8,403		274,106
Total Semiconductors				53,432,602
Energy-Alternate Sources - 3.5%
First Solar, Inc.*		11,690		678,137
SolarEdge Technologies, Inc.*		7,783		651,593
Enphase Energy, Inc.*		18,780		417,480
SunPower Corp. — Class A*,1		27,290		299,371
Total Energy-Alternate Sources				2,046,581
Electrical Components & Equipment - 1.4%
Universal Display Corp.		4,829		810,789
Chemicals - 1.3%
Versum Materials, Inc.		13,824		731,704
Electronics - 0.8%
Advanced Energy Industries, Inc.*		7,839		450,037
Total Common Stocks
(Cost $50,116,076)				57,471,713
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	187,667		187,667
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		60,347		60,347
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		54,313		54,313
Total Repurchase Agreements
(Cost $302,327)				302,327
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.9%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		508,500		508,500
Total Securities Lending Collateral
(Cost $508,500)				508,500
Total Investments - 101.0%
(Cost $50,926,903)			$	58,282,540
Other Assets & Liabilities, net - (1.0%)				(551,251	)
Total Net Assets - 100.0%			$	57,731,289

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
ELECTRONICS FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	57,471,713	$	—	$	—	$	57,471,713
Repurchase Agreements		—		302,327		—		302,327
Securities Lending Collateral		508,500		—		—		508,500
Total Assets	$	57,980,213	$	302,327	$	—	$	58,282,540

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

ELECTRONICS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $503,232 of securities loaned (cost $50,624,576)	$	57,980,213
Repurchase agreements, at value (cost $302,327)		302,327
Receivables:
Fund shares sold		119,206
Dividends		60,728
Securities lending income		261
Interest		19
Total assets		58,462,754
Liabilities:
Payable for:
Return of securities lending collateral		508,500
Fund shares redeemed		120,561
Management fees		39,010
Transfer agent and administrative fees		11,473
Printing		10,509
Portfolio accounting fees		4,589
Distribution and service fees		3,975
Trustees’ fees*		808
Miscellaneous		32,040
Total liabilities		731,465
Commitments and contingent liabilities (Note 9)		—
Net assets	$	57,731,289
Net assets consist of:
Paid in capital	$	56,061,703
Total distributable earnings (loss)		1,669,586
Net assets	$	57,731,289
Investor Class:
Net assets	$	45,607,143
Capital shares outstanding		321,662
Net asset value per share	$	141.79
A-Class:
Net assets	$	3,777,319
Capital shares outstanding		28,825
Net asset value per share	$	131.04
Maximum offering price per share (Net asset value divided by 95.25%)	$	137.57
C-Class:
Net assets	$	2,015,883
Capital shares outstanding		17,406
Net asset value per share	$	115.82
H-Class:
Net assets	$	6,330,944
Capital shares outstanding		49,770
Net asset value per share	$	127.20

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $990)	$	339,109
Interest		2,878
Income from securities lending, net		744
Total investment income		342,731
Expenses:
Management fees		177,901
Distribution and service fees:
A-Class		5,667
C-Class		9,451
H-Class		5,789
Transfer agent and administrative fees		52,324
Portfolio accounting fees		20,929
Professional fees		7,867
Trustees’ fees*		3,266
Custodian fees		2,881
Line of credit fees		107
Miscellaneous		41,182
Total expenses		327,364
Net investment income		15,367
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(984,651	)
Net realized loss		(984,651	)
Net change in unrealized appreciation (depreciation) on:
Investments		1,573,747
Net change in unrealized appreciation (depreciation)		1,573,747
Net realized and unrealized gain		589,096
Net increase in net assets resulting from operations	$	604,463

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

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

ELECTRONICS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	15,367		$	7,066
Net realized gain (loss) on investments		(984,651	)		202,557
Net change in unrealized appreciation (depreciation) on investments		1,573,747			(3,295,899	)
Net increase (decrease) in net assets resulting from operations		604,463			(3,086,276	)
Distributions to shareholders:
Investor Class		—			(1,489,940	)
A-Class		—			(286,771	)
C-Class		—			(117,497	)
H-Class		—			(92,551	)
Total distributions to shareholders		—			(1,986,759	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		98,387,838			69,011,457
A-Class		5,562,334			12,638,504
C-Class		2,560,031			1,776,804
H-Class		40,918,608			99,278,587
Distributions reinvested
Investor Class		—			1,470,138
A-Class		—			143,678
C-Class		—			112,532
H-Class		—			92,532
Cost of shares redeemed
Investor Class		(72,336,344	)		(103,905,626	)
A-Class		(5,959,607	)		(11,505,886	)
C-Class		(2,121,055	)		(3,275,148	)
H-Class		(37,437,385	)		(124,802,844	)
Net increase (decrease) from capital share transactions		29,574,420			(58,965,272	)
Net increase (decrease) in net assets		30,178,883			(64,038,307	)
Net assets:
Beginning of period		27,552,406			91,590,713
End of period	$	57,731,289		$	27,552,406
Capital share activity:
Shares sold
Investor Class		723,885			539,688
A-Class		43,741			108,795
C-Class		23,519			16,457
H-Class		345,004			823,516
Shares issued from reinvestment of distributions
Investor Class		—			13,668
A-Class		—			1,443
C-Class		—			1,271
H-Class		—			957
Shares redeemed
Investor Class		(549,812	)		(803,674	)
A-Class		(48,350	)		(101,201	)
C-Class		(18,818	)		(29,683	)
H-Class		(327,717	)		(1,041,614	)
Net increase (decrease) in shares		191,452			(470,377	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	126.31		$	136.98		$	110.00		$	81.23		$	83.54		$	69.82
Income (loss) from investment operations:
Net investment income (loss)b		.11			.27			(.11	)		.15			.02			.29
Net gain (loss) on investments (realized and unrealized)		15.37			(.29	)		27.15			28.62			(2.20	)		13.43
Total from investment operations		15.48			(.02	)		27.04			28.77			(2.18	)		13.72
Less distributions from:
Net investment income		—			—			(.06	)		—			(.13	)		—
Net realized gains		—			(10.65	)		—			—			—			—
Total distributions		—			(10.65	)		(.06	)		—			(.13	)		—
Net asset value, end of period	$	141.79		$	126.31		$	136.98		$	110.00		$	81.23		$	83.54
Total Return		12.26	%		1.35	%		24.59	%		35.41	%		(2.61	%)		19.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	45,607		$	18,642		$	54,505		$	51,722		$	8,217		$	18,144
Ratios to average net assets:
Net investment income (loss)		0.16	%		0.21	%		(0.08	%)		0.16	%		0.02	%		0.38	%
Total expenses		1.46	%		1.46	%		1.38	%		1.38	%		1.34	%		1.35	%
Portfolio turnover rate		212	%		521	%		457	%		643	%		769	%		562	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	116.88		$	127.98		$	103.03		$	76.25		$	78.62		$	65.87
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.03	)		(.33	)		(.18	)		(.20	)		(.17	)
Net gain (loss) on investments (realized and unrealized)		14.22			(.42	)		25.34			26.96			(2.04	)		12.92
Total from investment operations		14.16			(.45	)		25.01			26.78			(2.24	)		12.75
Less distributions from:
Net investment income		—			—			(.06	)		—			(.13	)		—
Net realized gains		—			(10.65	)		—			—			—			—
Total distributions		—			(10.65	)		(.06	)		—			(.13	)		—
Net asset value, end of period	$	131.04		$	116.88		$	127.98		$	103.03		$	76.25		$	78.62
Total Returnc		12.12	%		1.10	%		24.29	%		35.11	%		(2.84	%)		19.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,777		$	3,908		$	3,122		$	4,408		$	1,762		$	1,680
Ratios to average net assets:
Net investment income (loss)		(0.10	%)		(0.02	%)		(0.29	%)		(0.19	%)		(0.26	%)		(0.24	%)
Total expenses		1.71	%		1.72	%		1.63	%		1.63	%		1.60	%		1.61	%
Portfolio turnover rate		212	%		521	%		457	%		643	%		769	%		562	%

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

ELECTRONICS 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	103.69		$	115.77		$	93.90		$	70.02		$	72.76		$	61.40
Income (loss) from investment operations:
Net investment income (loss)b		(.45	)		(.91	)		(1.14	)		(.69	)		(.63	)		(.35	)
Net gain (loss) on investments (realized and unrealized)		12.58			(.52	)		23.07			24.57			(1.98	)		11.71
Total from investment operations		12.13			(1.43	)		21.93			23.88			(2.61	)		11.36
Less distributions from:
Net investment income		—			—			(.06	)		—			(.13	)		—
Net realized gains		—			(10.65	)		—			—			—			—
Total distributions		—			(10.65	)		(.06	)		—			(.13	)		—
Net asset value, end of period	$	115.82		$	103.69		$	115.77		$	93.90		$	70.02		$	72.76
Total Returnc		11.70	%		0.34	%		23.36	%		34.09	%		(3.58	%)		18.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,016		$	1,317		$	2,855		$	2,556		$	719		$	1,280
Ratios to average net assets:
Net investment income (loss)		(0.81	%)		(0.83	%)		(1.07	%)		(0.85	%)		(0.91	%)		(0.55	%)
Total expenses		2.46	%		2.45	%		2.38	%		2.38	%		2.35	%		2.35	%
Portfolio turnover rate		212	%		521	%		457	%		643	%		769	%		562	%

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

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.

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	113.47		$	124.62		$	100.33		$	74.32		$	76.66		$	64.40
Income (loss) from investment operations:
Net investment income (loss)b		.02			(.54	)		(.41	)		(.08	)		(.30	)		.06
Net gain (loss) on investments (realized and unrealized)		13.71			.04	d		24.76			26.09			(1.91	)		12.20
Total from investment operations		13.73			(.50	)		24.35			26.01			(2.21	)		12.26
Less distributions from:
Net investment income		—			—			(.06	)		—			(.13	)		—
Net realized gains		—			(10.65	)		—			—			—			—
Total distributions		—			(10.65	)		(.06	)		—			(.13	)		—
Net asset value, end of period	$	127.20		$	113.47		$	124.62		$	100.33		$	74.32		$	76.66
Total Return		12.10	%		1.08	%		24.29	%		34.98	%		(2.88	%)		19.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,331		$	3,686		$	31,109		$	23,134		$	11,257		$	6,285
Ratios to average net assets:
Net investment income (loss)		0.03	%		(0.45	%)		(0.36	%)		(0.09	%)		(0.40	%)		0.09	%
Total expenses		1.71	%		1.68	%		1.63	%		1.63	%		1.74	%		1.85	%
Portfolio turnover rate		212	%		521	%		457	%		643	%		769	%		562	%

a	Unaudited figures for the period ended September 30, 2019. 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	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of Fund shares in relation to fluctuating market value of the investments of the Fund.
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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.	7.8%
Chevron Corp.	6.7%
ConocoPhillips	3.6%
Kinder Morgan, Inc.	3.1%
Phillips 66	3.1%
Schlumberger Ltd.	3.0%
Marathon Petroleum Corp.	3.0%
EOG Resources, Inc.	2.9%
Occidental Petroleum Corp.	2.9%
Valero Energy Corp.	2.7%
Top Ten Total	38.8%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	(14.90%)	(31.43%)	(12.71%)	(2.41%)
A-Class Shares	(15.01%)	(31.60%)	(12.90%)	(2.65%)
A-Class Shares with sales charge‡	(19.04%)	(34.85%)	(13.74%)	(3.12%)
C-Class Shares	(15.32%)	(32.11%)	(13.58%)	(3.39%)
C-Class Shares with CDSC§	(16.17%)	(32.79%)	(13.58%)	(3.39%)
H-Class Shares**	(15.07%)	(31.64%)	(12.98%)	(2.81%)
S&P 500 Energy Index	(8.96%)	(19.21%)	(5.06%)	3.33%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and S&P 500 Energy Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 47

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
ENERGY FUND

	Shares		Value
COMMON STOCKS† - 99.6%
Oil & Gas - 68.7%
Exxon Mobil Corp.		17,519	$	1,237,017
Chevron Corp.		8,901		1,055,659
ConocoPhillips		9,934		566,039
Phillips 66		4,774		488,858
Marathon Petroleum Corp.		7,834		475,915
EOG Resources, Inc.		6,196		459,867
Occidental Petroleum Corp.		10,252		455,906
Valero Energy Corp.		5,013		427,308
Pioneer Natural Resources Co.		2,593		326,122
Hess Corp.		5,101		308,508
Diamondback Energy, Inc.		3,062		275,304
Petroleo Brasileiro S.A. ADR		18,938		274,033
BP plc ADR		7,055		268,019
Concho Resources, Inc.		3,882		263,588
Continental Resources, Inc.*		8,135		250,477
Noble Energy, Inc.		10,634		238,840
Apache Corp.		9,178		234,957
Marathon Oil Corp.		18,579		227,964
Devon Energy Corp.		9,328		224,432
HollyFrontier Corp.		4,058		217,671
Royal Dutch Shell plc — Class A ADR		3,668		215,862
Cabot Oil & Gas Corp. — Class A		10,938		192,181
Suncor Energy, Inc.		5,799		183,132
Canadian Natural Resources Ltd.		6,171		164,334
Parsley Energy, Inc. — Class A		9,646		162,053
Cimarex Energy Co.		3,317		159,017
WPX Energy, Inc.*		14,826		157,007
Helmerich & Payne, Inc.		3,779		151,425
CVR Energy, Inc.		3,432		151,111
Murphy Oil Corp.		6,344		140,266
PBF Energy, Inc. — Class A		4,839		131,572
Ecopetrol S.A. ADR		7,277		123,927
Delek US Holdings, Inc.		3,281		119,100
Equities Corp.		10,865		115,604
PDC Energy, Inc.*		3,440		95,460
CNX Resources Corp.*		11,622		84,376
SM Energy Co.		8,212		79,574
Carrizo Oil & Gas, Inc.*		8,034		68,972
Whiting Petroleum Corp.*		8,184		65,717
California Resources Corp.*,1		4,640		47,328
Total Oil & Gas				10,884,502
Pipelines - 15.2%
Kinder Morgan, Inc.		23,936		493,321
ONEOK, Inc.		5,398		397,779
Williams Companies, Inc.		15,883		382,145
Cheniere Energy, Inc.*		4,521		285,094
Targa Resources Corp.		5,440		218,525
Enbridge, Inc.		5,239		183,784
TC Energy Corp.		3,279		169,819
Equitrans Midstream Corp.		9,951		144,787
Plains GP Holdings, LP — Class A*		6,312		134,004
Total Pipelines				2,409,258
Oil & Gas Services - 12.9%
Schlumberger Ltd.		13,964		477,150
Baker Hughes a GE Co.		15,192		352,454
Halliburton Co.		15,127		285,144
TechnipFMC plc		8,582		207,170
National Oilwell Varco, Inc.		9,347		198,156
Core Laboratories N.V.		2,841		132,447
Patterson-UTI Energy, Inc.		11,165		95,461
Oceaneering International, Inc.*		6,311		85,514
RPC, Inc.1		15,228		85,429
ProPetro Holding Corp.*		7,768		70,611
US Silica Holdings, Inc.		6,117		58,479
Total Oil & Gas Services				2,048,015
Metal Fabricate & Hardware - 0.9%
Tenaris S.A. ADR		7,091		150,188
Transportation - 0.9%
Golar LNG Ltd.		10,885		141,396
Coal - 0.6%
Peabody Energy Corp.		5,837		85,921
Energy-Alternate Sources - 0.4%
Renewable Energy Group, Inc.*,1		3,847		57,724
Total Common Stocks
(Cost $14,928,435)				15,777,004
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	58,248		58,248
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		18,731		18,731
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		16,857		16,857
Total Repurchase Agreements
(Cost $93,836)				93,836

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
ENERGY FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,3 - 0.9%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		146,550	$	146,550
Total Securities Lending Collateral
(Cost $146,550)				146,550
Total Investments - 101.1%
(Cost $15,168,821)			$	16,017,390
Other Assets & Liabilities, net - (1.1%)				(180,510	)
Total Net Assets - 100.0%			$	15,836,880

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	15,777,004	$	—	$	—	$	15,777,004
Repurchase Agreements		—		93,836		—		93,836
Securities Lending Collateral		146,550		—		—		146,550
Total Assets	$	15,923,554	$	93,836	$	—	$	16,017,390

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

ENERGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $143,897 of securities loaned (cost $15,074,985)	$	15,923,554
Repurchase agreements, at value (cost $93,836)		93,836
Receivables:
Securities sold		147,239
Fund shares sold		40,489
Dividends		22,078
Securities lending income		38
Interest		6
Total assets		16,227,240
Liabilities:
Payable for:
Fund shares redeemed		208,684
Return of securities lending collateral		146,550
Management fees		10,522
Transfer agent and administrative fees		3,095
Distribution and service fees		1,464
Portfolio accounting fees		1,238
Trustees’ fees*		354
Miscellaneous		18,453
Total liabilities		390,360
Commitments and contingent liabilities (Note 9)		—
Net assets	$	15,836,880
Net assets consist of:
Paid in capital	$	39,562,968
Total distributable earnings (loss)		(23,726,088	)
Net assets	$	15,836,880
Investor Class:
Net assets	$	11,742,880
Capital shares outstanding		202,921
Net asset value per share	$	57.87
A-Class:
Net assets	$	2,281,006
Capital shares outstanding		42,308
Net asset value per share	$	53.91
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.60
C-Class:
Net assets	$	1,083,236
Capital shares outstanding		22,928
Net asset value per share	$	47.25
H-Class:
Net assets	$	729,758
Capital shares outstanding		13,973
Net asset value per share	$	52.23

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $4,185)	$	309,410
Interest		1,104
Income from securities lending, net		129
Total investment income		310,643
Expenses:
Management fees		82,098
Distribution and service fees:
A-Class		3,320
C-Class		6,851
H-Class		1,378
Transfer agent and administrative fees		24,146
Registration fees		9,678
Portfolio accounting fees		9,658
Trustees’ fees*		2,699
Custodian fees		1,375
Line of credit fees		94
Miscellaneous		11,571
Total expenses		152,868
Net investment income		157,775
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,822,609	)
Net realized loss		(1,822,609	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,351,916	)
Net change in unrealized appreciation (depreciation)		(1,351,916	)
Net realized and unrealized loss		(3,174,525	)
Net decrease in net assets resulting from operations	$	(3,016,750	)

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

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

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	157,775		$	148,597
Net realized loss on investments		(1,822,609	)		(9,602,012	)
Net change in unrealized appreciation (depreciation) on investments		(1,351,916	)		336,517
Net decrease in net assets resulting from operations		(3,016,750	)		(9,116,898	)
Distributions to shareholders:
Investor Class		—			(247,372	)
A-Class		—			(26,067	)
C-Class		—			(17,550	)
H-Class		—			(6,251	)
Total distributions to shareholders		—			(297,240	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		16,251,733			155,653,200
A-Class		828,036			5,378,833
C-Class		630,940			1,958,179
H-Class		33,996,595			88,531,263
Distributions reinvested
Investor Class		—			245,486
A-Class		—			25,507
C-Class		—			17,124
H-Class		—			6,251
Cost of shares redeemed
Investor Class		(18,278,032	)		(168,124,848	)
A-Class		(1,504,526	)		(4,690,758	)
C-Class		(952,861	)		(3,921,283	)
H-Class		(34,120,138	)		(89,229,010	)
Net decrease from capital share transactions		(3,148,253	)		(14,150,056	)
Net decrease in net assets		(6,165,003	)		(23,564,194	)
Net assets:
Beginning of period		22,001,883			45,566,077
End of period	$	15,836,880		$	22,001,883
Capital share activity:
Shares sold
Investor Class		260,676			1,891,436
A-Class		13,791			74,180
C-Class		12,153			29,583
H-Class		620,216			1,229,643
Shares issued from reinvestment of distributions
Investor Class		—			3,804
A-Class		—			423
C-Class		—			322
H-Class		—			107
Shares redeemed
Investor Class		(295,570	)		(2,158,043	)
A-Class		(24,594	)		(66,186	)
C-Class		(18,556	)		(60,832	)
H-Class		(619,647	)		(1,238,272	)
Net decrease in shares		(51,531	)		(293,835	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	68.00		$	74.41		$	78.73		$	66.61		$	92.98		$	118.79
Income (loss) from investment operations:
Net investment income (loss)b		.56			.35			.61			.40			1.12			.84
Net gain (loss) on investments (realized and unrealized)		(10.69	)		(6.29	)		(4.37	)		12.24			(26.37	)		(26.21	)
Total from investment operations		(10.13	)		(5.94	)		(3.76	)		12.64			(25.25	)		(25.37	)
Less distributions from:
Net investment income		—			(.47	)		(.56	)		(.52	)		(.52	)		(.44	)
Net realized gains		—			—			—			—			(.60	)		—
Total distributions		—			(.47	)		(.56	)		(.52	)		(1.12	)		(.44	)
Net asset value, end of period	$	57.87		$	68.00		$	74.41		$	78.73		$	66.61		$	92.98
Total Return		(14.90	%)		(7.94	%)		(4.78	%)		18.99	%		(27.30	%)		(21.42	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,743		$	16,172		$	37,253		$	24,284		$	22,216		$	28,123
Ratios to average net assets:
Net investment income (loss)		1.79	%		0.46	%		0.82	%		0.52	%		1.38	%		0.72	%
Total expenses		1.46	%		1.46	%		1.37	%		1.37	%		1.35	%		1.35	%
Portfolio turnover rate		241	%		525	%		954	%		996	%		595	%		463	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	63.43		$	69.61		$	73.86		$	62.67		$	87.76		$	112.30
Income (loss) from investment operations:
Net investment income (loss)b		.43			.21			.54			.23			.76			.48
Net gain (loss) on investments (realized and unrealized)		(9.95	)		(5.92	)		(4.23	)		11.48			(24.73	)		(24.58	)
Total from investment operations		(9.52	)		(5.71	)		(3.69	)		11.71			(23.97	)		(24.10	)
Less distributions from:
Net investment income		—			(.47	)		(.56	)		(.52	)		(.52	)		(.44	)
Net realized gains		—			—			—			—			(.60	)		—
Total distributions		—			(.47	)		(.56	)		(.52	)		(1.12	)		(.44	)
Net asset value, end of period	$	53.91		$	63.43		$	69.61		$	73.86		$	62.67		$	87.76
Total Returnc		(15.01	%)		(8.16	%)		(4.99	%)		18.65	%		(27.46	%)		(21.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,281		$	3,369		$	3,111		$	4,980		$	6,274		$	4,671
Ratios to average net assets:
Net investment income (loss)		1.45	%		0.33	%		0.78	%		0.31	%		1.02	%		0.43	%
Total expenses		1.71	%		1.71	%		1.63	%		1.62	%		1.60	%		1.60	%
Portfolio turnover rate		241	%		525	%		954	%		996	%		595	%		463	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	55.80		$	61.76		$	66.10		$	56.55		$	79.93		$	103.21
Income (loss) from investment operations:
Net investment income (loss)b		.21			(.36	)		(.01	)		(.29	)		.08			(.20	)
Net gain (loss) on investments (realized and unrealized)		(8.76	)		(5.13	)		(3.77	)		10.36			(22.34	)		(22.64	)
Total from investment operations		(8.55	)		(5.49	)		(3.78	)		10.07			(22.26	)		(22.84	)
Less distributions from:
Net investment income		—			(.47	)		(.56	)		(.52	)		(.52	)		(.44	)
Net realized gains		—			—			—			—			(.60	)		—
Total distributions		—			(.47	)		(.56	)		(.52	)		(1.12	)		(.44	)
Net asset value, end of period	$	47.25		$	55.80		$	61.76		$	66.10		$	56.55		$	79.93
Total Returnc		(15.32	%)		(8.83	%)		(5.73	%)		17.76	%		(28.01	%)		(22.18	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,083		$	1,637		$	3,721		$	4,331		$	4,198		$	6,754
Ratios to average net assets:
Net investment income (loss)		0.81	%		(0.56	%)		(0.02	%)		(0.45	%)		0.15	%		(0.20	%)
Total expenses		2.46	%		2.45	%		2.38	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		241	%		525	%		954	%		996	%		595	%		463	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d,e			Year Ended March 31, 2015d,e
Per Share Data
Net asset value, beginning of period	$	61.50		$	67.51		$	71.68		$	60.90		$	85.36		$	109.61
Income (loss) from investment operations:
Net investment income (loss)b		.29			.40			.99			.02			.40			.28
Net gain (loss) on investments (realized and unrealized)		(9.56	)		(5.94	)		(4.60	)		11.28			(23.74	)		(24.09	)
Total from investment operations		(9.27	)		(5.54	)		(3.61	)		11.30			(23.34	)		(23.81	)
Less distributions from:
Net investment income		—			(.47	)		(.56	)		(.52	)		(.52	)		(.44	)
Net realized gains		—			—			—			—			(.60	)		—
Total distributions		—			(.47	)		(.56	)		(.52	)		(1.12	)		(.44	)
Net asset value, end of period	$	52.23		$	61.50		$	67.51		$	71.68		$	60.90		$	85.36
Total Return		(15.07	%)		(8.16	%)		(5.03	%)		18.57	%		(27.53	%)		(21.76	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	730		$	824		$	1,480		$	2,556		$	2,795		$	6,452
Ratios to average net assets:
Net investment income (loss)		1.03	%		0.54	%		1.50	%		0.03	%		0.55	%		0.27	%
Total expenses		1.71	%		1.70	%		1.63	%		1.63	%		1.70	%		1.85	%
Portfolio turnover rate		241	%		525	%		954	%		996	%		595	%		463	%

a	Unaudited figures for the period ended September 30, 2019. 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 March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 7, 2016.
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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.	14.6%
Baker Hughes a GE Co.	10.8%
Halliburton Co.	7.3%
National Oilwell Varco, Inc.	6.0%
TechnipFMC plc	4.7%
Helmerich & Payne, Inc.	4.6%
Apergy Corp.	3.2%
Cactus, Inc. — Class A	3.1%
Tenaris S.A. ADR	3.0%
Patterson-UTI Energy, Inc.	2.9%
Top Ten Total	60.2%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	(28.35%)	(49.01%)	(24.83%)	(10.07%)
A-Class Shares	(28.41%)	(49.15%)	(25.02%)	(10.29%)
A-Class Shares with sales charge‡	(31.82%)	(51.56%)	(25.74%)	(10.73%)
C-Class Shares	(28.68%)	(49.49%)	(25.57%)	(10.96%)
C-Class Shares with CDSC§	(29.39%)	(49.99%)	(25.57%)	(10.96%)
H-Class Shares**	(28.24%)	(49.08%)	(25.06%)	(10.43%)
S&P 500 Energy Index	(8.96%)	(19.21%)	(5.06%)	3.33%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Energy Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 55

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
ENERGY SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.3%
Oil & Gas Services - 81.7%
Schlumberger Ltd.		26,162	$	893,955
Baker Hughes a GE Co.		28,459		660,249
Halliburton Co.		23,631		445,444
National Oilwell Varco, Inc.		17,511		371,233
TechnipFMC plc		11,962		288,763
Apergy Corp.*		7,196		194,652
Patterson-UTI Energy, Inc.		20,921		178,874
Dril-Quip, Inc.*		3,477		174,476
Archrock, Inc.		16,695		166,449
Oceaneering International, Inc.*		11,823		160,202
RPC, Inc.1		28,544		160,132
Helix Energy Solutions Group, Inc.*		19,160		154,430
Core Laboratories N.V.		3,285		153,147
Liberty Oilfield Services, Inc. — Class A		13,956		151,143
ProPetro Holding Corp.*		14,547		132,232
Oil States International, Inc.*		9,613		127,853
C&J Energy Services, Inc.*		10,706		114,875
DMC Global, Inc.1		2,510		110,390
Keane Group, Inc.*		18,079		109,559
US Silica Holdings, Inc.		11,455		109,510
Solaris Oilfield Infrastructure, Inc. — Class A		5,060		67,905
Exterran Corp.*		3,310		43,229
Matrix Service Co.*		2,520		43,193
Total Oil & Gas Services				5,011,895
Oil & Gas - 9.1%
Helmerich & Payne, Inc.		7,076		283,535
Transocean Ltd.*		38,065		170,151
Diamond Offshore Drilling, Inc.*		19,327		107,458
Total Oil & Gas				561,144
Machinery-Diversified - 3.1%
Cactus, Inc. — Class A*		6,675		193,175
Metal Fabricate & Hardware - 3.0%
Tenaris S.A. ADR		8,713		184,541
Transportation - 2.4%
SEACOR Holdings, Inc.*		1,750		82,372
Tidewater, Inc.*		4,200		63,462
Total Transportation				145,834
Total Common Stocks
(Cost $5,743,042)				6,096,589
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	22,017		22,017
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		7,080		7,080
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		6,372		6,372
Total Repurchase Agreements
(Cost $35,469)				35,469
	Shares
SECURITIES LENDING COLLATERAL†,3 - 3.3%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		204,529		204,529
Total Securities Lending Collateral
(Cost $204,529)				204,529
Total Investments - 103.2%
(Cost $5,983,040)			$	6,336,587
Other Assets & Liabilities, net - (3.2%)				(198,890	)
Total Net Assets - 100.0%			$	6,137,697

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
ENERGY SERVICES FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	6,096,589	$	—	$	—	$	6,096,589
Repurchase Agreements		—		35,469		—		35,469
Securities Lending Collateral		204,529		—		—		204,529
Total Assets	$	6,301,118	$	35,469	$	—	$	6,336,587

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

ENERGY SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $198,816 of securities loaned (cost $5,947,571)	$	6,301,118
Repurchase agreements, at value (cost $35,469)		35,469
Receivables:
Securities sold		105,288
Fund shares sold		76,944
Dividends		14,948
Securities lending income		60
Interest		2
Total assets		6,533,829
Liabilities:
Payable for:
Return of securities lending collateral		204,529
Fund shares redeemed		173,633
Management fees		4,333
Transfer agent and administrative fees		1,275
Distribution and service fees		701
Portfolio accounting fees		510
Trustees’ fees*		212
Miscellaneous		10,939
Total liabilities		396,132
Commitments and contingent liabilities (Note 9)		—
Net assets	$	6,137,697
Net assets consist of:
Paid in capital	$	39,890,083
Total distributable earnings (loss)		(33,752,386	)
Net assets	$	6,137,697
Investor Class:
Net assets	$	4,406,027
Capital shares outstanding		327,007
Net asset value per share	$	13.47
A-Class:
Net assets	$	551,598
Capital shares outstanding		43,762
Net asset value per share	$	12.60
Maximum offering price per share (Net asset value divided by 95.25%)	$	13.23
C-Class:
Net assets	$	558,665
Capital shares outstanding		50,139
Net asset value per share	$	11.14
H-Class:
Net assets	$	621,407
Capital shares outstanding		50,872
Net asset value per share	$	12.22

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $1,263)	$	133,495
Interest		695
Income from securities lending, net		272
Total investment income		134,462
Expenses:
Management fees		49,068
Distribution and service fees:
A-Class		886
C-Class		3,395
H-Class		2,824
Transfer agent and administrative fees		14,432
Portfolio accounting fees		5,773
Registration fees		4,944
Professional fees		2,170
Trustees’ fees*		1,365
Custodian fees		823
Line of credit fees		187
Miscellaneous		5,865
Total expenses		91,732
Net investment income		42,730
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(3,411,751	)
Net realized loss		(3,411,751	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,121,811	)
Net change in unrealized appreciation (depreciation)		(1,121,811	)
Net realized and unrealized loss		(4,533,562	)
Net decrease in net assets resulting from operations	$	(4,490,832	)

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

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

ENERGY SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	42,730		$	8,235
Net realized loss on investments		(3,411,751	)		(9,567,766	)
Net change in unrealized appreciation (depreciation) on investments		(1,121,811	)		150,990
Net decrease in net assets resulting from operations		(4,490,832	)		(9,408,541	)
Distributions to shareholders:
Investor Class		—			(100,286	)
A-Class		—			(12,025	)
C-Class		—			(12,784	)
H-Class		—			(19,170	)
Total distributions to shareholders		—			(144,265	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		32,503,987			87,233,777
A-Class		408,557			6,191,055
C-Class		588,018			1,750,392
H-Class		40,113,066			157,012,452
Distributions reinvested
Investor Class		—			97,137
A-Class		—			11,808
C-Class		—			12,741
H-Class		—			19,147
Cost of shares redeemed
Investor Class		(31,241,187	)		(83,475,137	)
A-Class		(447,071	)		(5,678,528	)
C-Class		(631,764	)		(2,469,916	)
H-Class		(45,611,428	)		(162,786,956	)
Net decrease from capital share transactions		(4,317,822	)		(2,082,028	)
Net decrease in net assets		(8,808,654	)		(11,634,834	)
Net assets:
Beginning of period		14,946,351			26,581,185
End of period	$	6,137,697		$	14,946,351
Capital share activity:
Shares sold
Investor Class		1,966,424			3,598,503
A-Class		23,156			317,922
C-Class		45,035			84,483
H-Class		2,886,772			6,965,608
Shares issued from reinvestment of distributions
Investor Class		—			5,599
A-Class		—			726
C-Class		—			882
H-Class		—			1,217
Shares redeemed
Investor Class		(2,006,260	)		(3,561,879	)
A-Class		(26,516	)		(305,767	)
C-Class		(47,767	)		(119,081	)
H-Class		(3,211,397	)		(7,278,381	)
Net decrease in shares		(370,553	)		(290,168	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	18.80		$	25.20		$	32.24		$	28.41		$	39.36		$	62.43
Income (loss) from investment operations:
Net investment income (loss)b		.07			.01			.59	d		.01			.29			.48
Net gain (loss) on investments (realized and unrealized)		(5.40	)		(6.19	)		(7.38	)		4.07			(10.90	)		(23.55	)
Total from investment operations		(5.33	)		(6.18	)		(6.79	)		4.08			(10.61	)		(23.07	)
Less distributions from:
Net investment income		—			(.22	)		(.25	)		(.25	)		(.34	)		—
Total distributions		—			(.22	)		(.25	)		(.25	)		(.34	)		—
Net asset value, end of period	$	13.47		$	18.80		$	25.20		$	32.24		$	28.41		$	39.36
Total Return		(28.35	%)		(24.43	%)		(21.11	%)		14.38	%		(27.05	%)		(36.95	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,406		$	6,896		$	8,181		$	11,757		$	9,521		$	16,144
Ratios to average net assets:
Net investment income (loss)		0.85	%		0.06	%		2.19	%e		0.03	%		0.83	%		0.86	%
Total expenses		1.47	%		1.46	%		1.38	%		1.38	%		1.35	%		1.36	%
Portfolio turnover rate		532	%		1,453	%		1,824	%		1,830	%		1,241	%		494	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	17.60		$	23.68		$	30.39		$	26.86		$	37.32		$	59.34
Income (loss) from investment operations:
Net investment income (loss)b		.05			.12			.60	d		(.14	)		.24			.25
Net gain (loss) on investments (realized and unrealized)		(5.05	)		(5.98	)		(7.06	)		3.92			(10.36	)		(22.27	)
Total from investment operations		(5.00	)		(5.86	)		(6.46	)		3.78			(10.12	)		(22.02	)
Less distributions from:
Net investment income		—			(.22	)		(.25	)		(.25	)		(.34	)		—
Total distributions		—			(.22	)		(.25	)		(.25	)		(.34	)		—
Net asset value, end of period	$	12.60		$	17.60		$	23.68		$	30.39		$	26.86		$	37.32
Total Returnc		(28.41	%)		(24.65	%)		(21.31	%)		14.09	%		(27.22	%)		(37.11	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	552		$	829		$	811		$	1,295		$	2,849		$	3,545
Ratios to average net assets:
Net investment income (loss)		0.64	%		0.60	%		2.37	%e		(0.47	%)		0.73	%		0.47	%
Total expenses		1.72	%		1.73	%		1.63	%		1.62	%		1.59	%		1.60	%
Portfolio turnover rate		532	%		1,453	%		1,824	%		1,830	%		1,241	%		494	%

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

ENERGY 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	15.62		$	21.20		$	27.44		$	24.46		$	34.28		$	54.92
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		(.17	)		.38	d		(.33	)		(.05	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		(4.47	)		(5.19	)		(6.37	)		3.56			(9.43	)		(20.52	)
Total from investment operations		(4.48	)		(5.36	)		(5.99	)		3.23			(9.48	)		(20.64	)
Less distributions from:
Net investment income		—			(.22	)		(.25	)		(.25	)		(.34	)		—
Total distributions		—			(.22	)		(.25	)		(.25	)		(.34	)		—
Net asset value, end of period	$	11.14		$	15.62		$	21.20		$	27.44		$	24.46		$	34.28
Total Returnc		(28.68	%)		(25.17	%)		(21.89	%)		13.22	%		(27.76	%)		(37.58	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	559		$	826		$	1,836		$	3,258		$	2,544		$	3,889
Ratios to average net assets:
Net investment income (loss)		(0.12	%)		(0.84	%)		1.66	%e		(1.23	%)		(0.16	%)		(0.24	%)
Total expenses		2.47	%		2.45	%		2.38	%		2.37	%		2.35	%		2.36	%
Portfolio turnover rate		532	%		1,453	%		1,824	%		1,830	%		1,241	%		494	%

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

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.

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	17.03		$	22.93		$	29.47		$	26.07		$	36.29		$	57.89
Income (loss) from investment operations:
Net investment income (loss)b		.05			.03			.19	d		(.08	)		.05			.07
Net gain (loss) on investments (realized and unrealized)		(4.86	)		(5.71	)		(6.48	)		3.73			(9.93	)		(21.67	)
Total from investment operations		(4.81	)		(5.68	)		(6.29	)		3.65			(9.88	)		(21.60	)
Less distributions from:
Net investment income		—			(.22	)		(.25	)		(.25	)		(.34	)		—
Total distributions		—			(.22	)		(.25	)		(.25	)		(.34	)		—
Net asset value, end of period	$	12.22		$	17.03		$	22.93		$	29.47		$	26.07		$	36.29
Total Return		(28.24	%)		(24.67	%)		(21.40	%)		14.02	%		(27.31	%)		(37.33	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	621		$	6,395		$	15,754		$	4,193		$	1,700		$	1,814
Ratios to average net assets:
Net investment income (loss)		0.66	%		0.15	%		0.76	%e		(0.29	%)		0.15	%		0.13	%
Total expenses		1.72	%		1.70	%		1.63	%		1.62	%		1.67	%		1.86	%
Portfolio turnover rate		532	%		1,453	%		1,824	%		1,830	%		1,241	%		494	%

a	Unaudited figures for the period ended September 30, 2019. 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 per share includes $0.54, $0.50, $0.45, and $0.50 for Investor Class, A-Class, C-Class, and H-Class, respectively, resulting from a special dividend from Baker Hughes, a GE Co., LLC on July 05, 2017.
e	Net investment income to average net assets includes 1.99% for Investor Class, A-Class, C-Class, and H-Class, resulting from a special dividend from Baker Hughes, a GE Co., LLC on July 05, 2017.
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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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	3.1%
JPMorgan Chase & Co.	2.7%
Bank of America Corp.	2.3%
Wells Fargo & Co.	2.1%
Citigroup, Inc.	1.7%
American Express Co.	1.4%
American Tower Corp. — Class A	1.4%
U.S. Bancorp	1.3%
Goldman Sachs Group, Inc.	1.2%
CME Group, Inc. — Class A	1.2%
Top Ten Total	18.4%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	8.33%	6.93%	8.09%	9.08%
A-Class Shares	8.21%	6.66%	7.82%	8.80%
A-Class Shares with sales charge‡	3.07%	1.60%	6.77%	8.27%
C-Class Shares	7.81%	5.87%	7.01%	8.00%
C-Class Shares with CDSC§	6.81%	4.87%	7.01%	8.00%
H-Class Shares**	8.21%	6.64%	7.78%	8.65%
S&P 500 Financials Index	10.17%	3.92%	10.51%	10.77%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and S&P 500 Financials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 63

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
FINANCIAL SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Banks - 29.7%
JPMorgan Chase & Co.		7,346	$	864,551
Bank of America Corp.		25,209		735,347
Wells Fargo & Co.		13,485		680,183
Citigroup, Inc.		8,072		557,614
U.S. Bancorp		7,550		417,817
Goldman Sachs Group, Inc.		1,877		388,971
Morgan Stanley		8,768		374,131
PNC Financial Services Group, Inc.		2,517		352,783
BB&T Corp.		5,422		289,372
Bank of New York Mellon Corp.		6,351		287,129
SunTrust Banks, Inc.		3,636		250,157
M&T Bank Corp.		1,326		209,468
State Street Corp.		3,508		207,638
Northern Trust Corp.		2,154		201,011
Fifth Third Bancorp		7,301		199,901
KeyCorp		10,666		190,281
ICICI Bank Ltd. ADR		15,498		188,766
HDFC Bank Ltd. ADR		3,228		184,157
First Republic Bank		1,879		181,699
Regions Financial Corp.		11,264		178,196
Citizens Financial Group, Inc.		5,038		178,194
Huntington Bancshares, Inc.		12,080		172,382
Toronto-Dominion Bank		2,621		152,699
Royal Bank of Canada		1,872		151,932
Popular, Inc.		2,807		151,803
SVB Financial Group*		704		147,101
Comerica, Inc.		2,146		141,615
Zions Bancorp North America		2,836		126,259
Commerce Bancshares, Inc.		1,910		115,841
Signature Bank		962		114,690
East West Bancorp, Inc.		2,541		112,541
Synovus Financial Corp.		2,949		105,456
First Horizon National Corp.		6,228		100,894
Pinnacle Financial Partners, Inc.		1,677		95,170
PacWest Bancorp		2,550		92,667
IBERIABANK Corp.		1,182		89,288
Wintrust Financial Corp.		1,324		85,570
Umpqua Holdings Corp.		5,144		84,670
Bank OZK		3,096		84,428
First Hawaiian, Inc.		3,143		83,918
Associated Banc-Corp.		4,069		82,397
Hancock Whitney Corp.		2,137		81,836
Texas Capital Bancshares, Inc.*		1,369		74,816
Total Banks				9,565,339
REITs - 29.7%
American Tower Corp. — Class A		1,971		435,847
Crown Castle International Corp.		2,427		337,377
Prologis, Inc.		3,890		331,506
Equinix, Inc.		553		318,970
Simon Property Group, Inc.		2,003		311,767
Public Storage		1,188		291,381
Welltower, Inc.		2,996		271,587
Equity Residential		2,965		255,761
AvalonBay Communities, Inc.		1,162		250,213
Digital Realty Trust, Inc.		1,902		246,899
Ventas, Inc.		3,187		232,747
SBA Communications Corp.		960		231,504
Realty Income Corp.		2,887		221,375
Essex Property Trust, Inc.		648		211,669
Weyerhaeuser Co.		7,353		203,678
Boston Properties, Inc.		1,569		203,437
Alexandria Real Estate Equities, Inc.		1,223		188,391
HCP, Inc.		5,258		187,343
Invitation Homes, Inc.		6,065		179,585
Extra Space Storage, Inc.		1,496		174,763
Mid-America Apartment Communities, Inc.		1,332		173,173
UDR, Inc.		3,514		170,359
Host Hotels & Resorts, Inc.		9,289		160,607
Vornado Realty Trust		2,509		159,748
Annaly Capital Management, Inc.		18,132		159,562
Duke Realty Corp.		4,679		158,946
Regency Centers Corp.		2,236		155,380
Camden Property Trust		1,335		148,198
Federal Realty Investment Trust		1,068		145,397
VICI Properties, Inc.		6,341		143,624
National Retail Properties, Inc.		2,486		140,210
Omega Healthcare Investors, Inc.		3,340		139,579
Iron Mountain, Inc.		4,272		138,370
CyrusOne, Inc.		1,732		137,001
Kimco Realty Corp.		6,482		135,344
AGNC Investment Corp.		8,232		132,453
STORE Capital Corp.		3,530		132,057
Lamar Advertising Co. — Class A		1,595		130,678
Liberty Property Trust		2,508		128,736
Gaming and Leisure Properties, Inc.		3,323		127,072
Apartment Investment & Management Co. — Class A		2,431		126,752
Kilroy Realty Corp.		1,624		126,493
American Homes 4 Rent — Class A		4,878		126,291
Douglas Emmett, Inc.		2,920		125,064
SL Green Realty Corp.		1,442		117,883
New Residential Investment Corp.		7,452		116,847
CubeSmart		3,286		114,681
Brixmor Property Group, Inc.		5,492		111,433
Cousins Properties, Inc.		2,810		105,628
Park Hotels & Resorts, Inc.		4,002		99,930
Macerich Co.1		3,018		95,339
Sabra Health Care REIT, Inc.		4,126		94,733
PotlatchDeltic Corp.		1,806		74,199
Senior Housing Properties Trust		7,505		69,459
Uniti Group, Inc.		7,086		55,023
Total REITs				9,562,049
Insurance - 19.8%
Berkshire Hathaway, Inc. — Class B*		4,880		1,015,138
Marsh & McLennan Companies, Inc.		3,139		314,057
Progressive Corp.		3,902		301,430
American International Group, Inc.		5,410		301,337
Chubb Ltd.		1,862		300,601
MetLife, Inc.		6,263		295,363

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
FINANCIAL SERVICES FUND

	Shares		Value
Travelers Companies, Inc.		1,891	$	281,173
Aflac, Inc.		5,303		277,453
Prudential Financial, Inc.		3,008		270,570
Allstate Corp.		2,459		267,244
Willis Towers Watson plc		1,146		221,144
Hartford Financial Services Group, Inc.		3,444		208,741
Cincinnati Financial Corp.		1,696		197,872
Arch Capital Group Ltd.*		4,471		187,693
Aon plc		943		182,537
Arthur J Gallagher & Co.		2,030		181,827
Principal Financial Group, Inc.		3,134		179,077
Loews Corp.		3,462		178,224
Everest Re Group Ltd.		605		160,984
Fidelity National Financial, Inc.		3,560		158,100
Lincoln National Corp.		2,579		155,565
Athene Holding Ltd. — Class A*		3,571		150,196
AXA Equitable Holdings, Inc.		6,584		145,901
Assurant, Inc.		992		124,813
Voya Financial, Inc.		2,269		123,524
Unum Group		3,778		112,282
Brighthouse Financial, Inc.*		2,305		93,283
Total Insurance				6,386,129
Diversified Financial Services - 15.7%
American Express Co.		3,753		443,905
CME Group, Inc. — Class A		1,840		388,866
BlackRock, Inc. — Class A		835		372,109
Charles Schwab Corp.		7,935		331,921
Intercontinental Exchange, Inc.		3,462		319,439
Capital One Financial Corp.		3,186		289,862
T. Rowe Price Group, Inc.		2,035		232,499
Discover Financial Services		2,758		223,646
TD Ameritrade Holding Corp.		4,742		221,451
Interactive Brokers Group, Inc. — Class A		4,031		216,787
Synchrony Financial		6,248		212,994
Ameriprise Financial, Inc.		1,343		197,555
Nasdaq, Inc.		1,789		177,737
Franklin Resources, Inc.		5,898		170,216
Ally Financial, Inc.		4,817		159,732
Cboe Global Markets, Inc.		1,373		157,772
Raymond James Financial, Inc.		1,847		152,304
E*TRADE Financial Corp.		3,310		144,614
SEI Investments Co.		2,272		134,627
Invesco Ltd.		7,484		126,779
LPL Financial Holdings, Inc.		1,406		115,151
Jefferies Financial Group, Inc.		5,642		103,813
Affiliated Managers Group, Inc.		1,107		92,269
LendingTree, Inc.*		285		88,473
Total Diversified Financial Services				5,074,521
Commercial Services - 2.4%
S&P Global, Inc.		1,380		338,072
Moody’s Corp.		1,325		271,400
MarketAxess Holdings, Inc.		473		154,908
Total Commercial Services				764,380
Savings & Loans - 0.9%
People’s United Financial, Inc.		7,148		111,759
Sterling Bancorp		4,535		90,972
Investors Bancorp, Inc.		7,021		79,758
Total Savings & Loans				282,489
Private Equity - 0.6%
KKR & Company, Inc. — Class A		7,560		202,986
Software - 0.5%
MSCI, Inc. — Class A		845		183,999
Media - 0.4%
FactSet Research Systems, Inc.		526		127,802
Household Products & Housewares - 0.0%
Spectrum Brands Holdings, Inc.		144		7,594
Total Common Stocks
(Cost $27,002,871)				32,157,288
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	110,946		110,946
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		35,677		35,677
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		32,109		32,109
Total Repurchase Agreements
(Cost $178,732)				178,732
	Shares
SECURITIES LENDING COLLATERAL†,3 - 0.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		74,646		74,646
Total Securities Lending Collateral
(Cost $74,646)				74,646
Total Investments - 100.5%
(Cost $27,256,249)			$	32,410,666
Other Assets & Liabilities, net - (0.5%)				(167,686	)
Total Net Assets - 100.0%			$	32,242,980

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
FINANCIAL SERVICES FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	32,157,288	$	—	$	—	$	32,157,288
Repurchase Agreements		—		178,732		—		178,732
Securities Lending Collateral		74,646		—		—		74,646
Total Assets	$	32,231,934	$	178,732	$	—	$	32,410,666

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

FINANCIAL SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $71,457 of securities loaned (cost $27,077,517)	$	32,231,934
Repurchase agreements, at value (cost $178,732)		178,732
Receivables:
Securities sold		285,387
Dividends		56,740
Fund shares sold		25,498
Foreign tax reclaims		330
Interest		11
Securities lending income		1
Total assets		32,778,633
Liabilities:
Payable for:
Fund shares redeemed		412,428
Return of securities lending collateral		74,646
Management fees		15,790
Transfer agent and administrative fees		4,644
Distribution and service fees		2,617
Portfolio accounting fees		1,857
Trustees’ fees*		443
Miscellaneous		23,228
Total liabilities		535,653
Commitments and contingent liabilities (Note 9)		—
Net assets	$	32,242,980
Net assets consist of:
Paid in capital	$	28,201,825
Total distributable earnings (loss)		4,041,155
Net assets	$	32,242,980
Investor Class:
Net assets	$	18,147,756
Capital shares outstanding		243,908
Net asset value per share	$	74.40
A-Class:
Net assets	$	7,928,969
Capital shares outstanding		114,097
Net asset value per share	$	69.49
Maximum offering price per share (Net asset value divided by 95.25%)	$	72.96
C-Class:
Net assets	$	893,110
Capital shares outstanding		14,666
Net asset value per share	$	60.90
H-Class:
Net assets	$	5,273,145
Capital shares outstanding		78,268
Net asset value per share	$	67.37

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $702)	$	314,582
Interest		1,516
Income from securities lending, net		23
Total investment income		316,121
Expenses:
Management fees		102,128
Distribution and service fees:
A-Class		10,026
C-Class		4,793
H-Class		6,376
Transfer agent and administrative fees		30,037
Portfolio accounting fees		12,015
Registration fees		11,987
Trustees’ fees*		3,052
Custodian fees		1,698
Line of credit fees		15
Miscellaneous		14,665
Total expenses		196,792
Net investment income		119,329
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		78,213
Net realized gain		78,213
Net change in unrealized appreciation (depreciation) on:
Investments		1,180,605
Net change in unrealized appreciation (depreciation)		1,180,605
Net realized and unrealized gain		1,258,818
Net increase in net assets resulting from operations	$	1,378,147

^* 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

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	119,329		$	177,282
Net realized gain on investments		78,213			4,257,309
Net change in unrealized appreciation (depreciation) on investments		1,180,605			(3,956,634	)
Net increase in net assets resulting from operations		1,378,147			477,957
Distributions to shareholders:
Investor Class		—			(564,622	)
A-Class		—			(342,005	)
C-Class		—			(70,151	)
H-Class		—			(560,062	)
Total distributions to shareholders		—			(1,536,840	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		28,449,332			65,186,396
A-Class		2,942,497			3,561,906
C-Class		793,757			1,960,408
H-Class		14,138,502			77,362,348
Distributions reinvested
Investor Class		—			552,353
A-Class		—			339,699
C-Class		—			69,278
H-Class		—			560,062
Cost of shares redeemed
Investor Class		(15,975,053	)		(84,529,582	)
A-Class		(3,281,154	)		(4,236,390	)
C-Class		(958,942	)		(3,184,480	)
H-Class		(10,414,971	)		(80,120,580	)
Net increase (decrease) from capital share transactions		15,693,968			(22,478,582	)
Net increase (decrease) in net assets		17,072,115			(23,537,465	)
Net assets:
Beginning of period		15,170,865			38,708,330
End of period	$	32,242,980		$	15,170,865
Capital share activity:
Shares sold
Investor Class		393,077			904,721
A-Class		43,762			54,277
C-Class		13,390			32,994
H-Class		214,089			1,254,996
Shares issued from reinvestment of distributions
Investor Class		—			8,628
A-Class		—			5,669
C-Class		—			1,312
H-Class		—			9,640
Shares redeemed
Investor Class		(221,659	)		(1,189,781	)
A-Class		(48,031	)		(63,756	)
C-Class		(16,157	)		(53,504	)
H-Class		(161,609	)		(1,284,564	)
Net increase (decrease) in shares		216,862			(319,368	)

68 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	68.68		$	72.17		$	65.14		$	53.90		$	57.78		$	53.05
Income (loss) from investment operations:
Net investment income (loss)b		.47			.53			.61			.55			.77			.46
Net gain (loss) on investments (realized and unrealized)		5.25			(.86	)g		6.79			11.14			(4.19	)		4.40
Total from investment operations		5.72			(.33	)		7.40			11.69			(3.42	)		4.86
Less distributions from:
Net investment income		—			(.89	)		(.37	)		(.45	)		(.30	)		(.13	)
Net realized gains		—			(2.27	)		—			—			(.16	)		—
Total distributions		—			(3.16	)		(.37	)		(.45	)		(.46	)		(.13	)
Net asset value, end of period	$	74.40		$	68.68		$	72.17		$	65.14		$	53.90		$	57.78
Total Return		8.33	%		(0.14	%)		11.37	%		21.72	%		(5.95	%)		9.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	18,148		$	4,978		$	25,183		$	39,214		$	15,110		$	49,897
Ratios to average net assets:
Net investment income (loss)		1.30	%		0.74	%		0.89	%		0.90	%		1.36	%		0.82	%
Total expenses		1.46	%		1.45	%		1.38	%		1.38	%		1.34	%		1.34	%
Portfolio turnover rate		90	%		410	%		347	%		389	%		268	%		326	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	64.22		$	67.88		$	61.44		$	51.00		$	54.83		$	50.47
Income (loss) from investment operations:
Net investment income (loss)b		.26			.37			.53			.41			.46			.21
Net gain (loss) on investments (realized and unrealized)		5.01			(.87	)g		6.28			10.48			(3.83	)		4.28
Total from investment operations		5.27			(.50	)		6.81			10.89			(3.37	)		4.49
Less distributions from:
Net investment income		—			(.89	)		(.37	)		(.45	)		(.30	)		(.13	)
Net realized gains		—			(2.27	)		—			—			(.16	)		—
Total distributions		—			(3.16	)		(.37	)		(.45	)		(.46	)		(.13	)
Net asset value, end of period	$	69.49		$	64.22		$	67.88		$	61.44		$	51.00		$	54.83
Total Returnc		8.21	%		(0.41	%)		11.08	%		21.42	%		(6.17	%)		8.89	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,929		$	7,602		$	8,293		$	1,834		$	1,039		$	2,734
Ratios to average net assets:
Net investment income (loss)		0.77	%		0.55	%		0.81	%		0.73	%		0.87	%		0.41	%
Total expenses		1.71	%		1.71	%		1.63	%		1.62	%		1.60	%		1.59	%
Portfolio turnover rate		90	%		410	%		347	%		389	%		268	%		326	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016e			Year Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	56.49		$	60.56		$	55.26		$	46.24		$	50.14		$	46.51
Income (loss) from investment operations:
Net investment income (loss)b		—	f		(.16	)		—	f		(.07	)		.11			(.11	)
Net gain (loss) on investments (realized and unrealized)		4.41			(.75	)g		5.67			9.54			(3.55	)		3.87
Total from investment operations		4.41			(.91	)		5.67			9.47			(3.44	)		3.76
Less distributions from:
Net investment income		—			(.89	)		(.37	)		(.45	)		(.30	)		(.13	)
Net realized gains		—			(2.27	)		—			—			(.16	)		—
Total distributions		—			(3.16	)		(.37	)		(.45	)		(.46	)		(.13	)
Net asset value, end of period	$	60.90		$	56.49		$	60.56		$	55.26		$	46.24		$	50.14
Total Returnc		7.81	%		(1.15	%)		10.27	%		20.51	%		(6.89	%)		8.08	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	893		$	985		$	2,218		$	2,270		$	1,065		$	1,255
Ratios to average net assets:
Net investment income (loss)		(0.01	%)		(0.27	%)		—	h		(0.13	%)		0.22	%		(0.23	%)
Total expenses		2.46	%		2.46	%		2.38	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		90	%		410	%		347	%		389	%		268	%		326	%

70 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017e			Year Ended March 31, 2016d,e			Year Ended March 31, 2015d,e
Per Share Data
Net asset value, beginning of period	$	62.26		$	65.93		$	59.67		$	49.53		$	53.30		$	49.18
Income (loss) from investment operations:
Net investment income (loss)b		.30			.03			.46			.33			.43			.15
Net gain (loss) on investments (realized and unrealized)		4.81			(.54	)g		6.17			10.26			(3.74	)		4.10
Total from investment operations		5.11			(.51	)		6.63			10.59			(3.31	)		4.25
Less distributions from:
Net investment income		—			(.89	)		(.37	)		(.45	)		(.30	)		(.13	)
Net realized gains		—			(2.27	)		—			—			(.16	)		—
Total distributions		—			(3.16	)		(.37	)		(.45	)		(.46	)		(.13	)
Net asset value, end of period	$	67.37		$	62.26		$	65.93		$	59.67		$	49.53		$	53.30
Total Return		8.21	%		(0.42	%)		11.11	%		21.43	%		(6.25	%)		8.63	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,273		$	1,606		$	3,014		$	18,259		$	3,028		$	4,479
Ratios to average net assets:
Net investment income (loss)		0.93	%		0.05	%		0.72	%		0.58	%		0.83	%		0.28	%
Total expenses		1.71	%		1.73	%		1.63	%		1.63	%		1.65	%		1.85	%
Portfolio turnover rate		90	%		410	%		347	%		389	%		268	%		326	%

a	Unaudited figures for the period ended September 30, 2019. 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.
e	Share split — Per share amount for the periods presented through March 31, 2017 have been restated to reflect a 2:1 share split effective October 31, 2016.
f	Net investment income is less than $0.01 per share.
g	The amount shown for a share outstanding throughout the period does not accord with the aggregate net gains on investments for the year because of the sales and repurchases of the fund shares in relation to fluctuating market value of the investments of the Fund.
h	Less than 0.01%.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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	3.6%
Merck & Company, Inc.	2.8%
Pfizer, Inc.	2.7%
UnitedHealth Group, Inc.	2.7%
Abbott Laboratories	2.4%
AbbVie, Inc.	2.1%
Thermo Fisher Scientific, Inc.	2.1%
Amgen, Inc.	2.1%
Eli Lilly & Co.	2.0%
Danaher Corp.	1.9%
Top Ten Total	24.4%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	(3.75%)	(7.79%)	6.75%	12.45%
A-Class Shares	(3.90%)	(8.06%)	6.47%	12.17%
A-Class Shares with sales charge‡	(8.47%)	(12.43%)	5.44%	11.63%
C-Class Shares	(4.27%)	(8.74%)	5.69%	11.36%
C-Class Shares with CDSC§	(5.23%)	(9.63%)	5.69%	11.36%
H-Class Shares**	(3.87%)	(8.04%)	6.43%	12.02%
S&P 500 Health Care Index	(0.90%)	(3.57%)	8.95%	14.21%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

72 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
HEALTH CARE FUND

	Shares		Value
COMMON STOCKS† - 99.8%
Pharmaceuticals - 32.5%
Johnson & Johnson		9,310	$	1,204,528
Merck & Company, Inc.		11,336		954,265
Pfizer, Inc.		25,658		921,892
AbbVie, Inc.		9,359		708,663
Eli Lilly & Co.		5,898		659,573
Bristol-Myers Squibb Co.		11,735		595,082
CVS Health Corp.		9,342		589,200
Zoetis, Inc.		3,991		497,239
Allergan plc		2,920		491,407
Cigna Corp.		3,135		475,862
McKesson Corp.		2,309		315,548
AmerisourceBergen Corp. — Class A		3,228		265,761
Cardinal Health, Inc.		5,206		245,671
DexCom, Inc.*		1,575		235,053
Novartis AG ADR		2,604		226,288
AstraZeneca plc ADR		5,039		224,588
Jazz Pharmaceuticals plc*		1,703		218,222
Teva Pharmaceutical Industries Ltd. ADR*		31,539		216,988
Elanco Animal Health, Inc.*		7,775		206,737
Mylan N.V.*		10,414		205,989
Perrigo Company plc		3,502		195,727
Canopy Growth Corp.*,1		7,910		181,376
Alkermes plc*		9,116		177,853
Bausch Health Companies, Inc.*		8,094		176,854
Neurocrine Biosciences, Inc.*		1,935		174,363
PRA Health Sciences, Inc.*		1,609		159,661
Tilray, Inc. — Class 2*,1		6,016		148,836
Sarepta Therapeutics, Inc.*		1,959		147,552
Global Blood Therapeutics, Inc.*		2,195		106,501
Heron Therapeutics, Inc.*		4,092		75,702
Total Pharmaceuticals				11,002,981
Healthcare-Products - 29.8%
Abbott Laboratories		9,574		801,057
Thermo Fisher Scientific, Inc.		2,420		704,873
Danaher Corp.		4,515		652,101
Stryker Corp.		2,666		576,656
Becton Dickinson and Co.		2,132		539,311
Medtronic plc		4,817		523,223
Intuitive Surgical, Inc.*		961		518,873
Boston Scientific Corp.*		11,735		477,497
Edwards Lifesciences Corp.*		2,039		448,396
Baxter International, Inc.		4,994		436,825
Zimmer Biomet Holdings, Inc.		2,493		342,214
IDEXX Laboratories, Inc.*		1,152		313,263
ResMed, Inc.		2,136		288,595
Teleflex, Inc.		753		255,832
Align Technology, Inc.*		1,391		251,660
Cooper Companies, Inc.		846		251,262
Hologic, Inc.*		4,768		240,736
Dentsply Sirona, Inc.		4,453		237,389
Varian Medical Systems, Inc.*		1,855		220,912
Insulet Corp.*		1,270		209,461
Henry Schein, Inc.*		3,225		204,788
Masimo Corp.*		1,235		183,756
LivaNova plc*		2,479		182,925
Bio-Techne Corp.		919		179,821
Alcon, Inc.*		3,079		179,475
ABIOMED, Inc.*		1,006		178,957
Integra LifeSciences Holdings Corp.*		2,458		147,652
ICU Medical, Inc.*		753		120,179
Tandem Diabetes Care, Inc.*		2,007		118,373
NuVasive, Inc.*		1,858		117,760
Patterson Companies, Inc.		4,984		88,815
Inogen, Inc.*		1,419		67,984
Total Healthcare-Products				10,060,621
Biotechnology - 18.9%
Amgen, Inc.		3,627		701,861
Gilead Sciences, Inc.		9,102		576,885
Celgene Corp.*		5,534		549,526
Illumina, Inc.*		1,429		434,730
Vertex Pharmaceuticals, Inc.*		2,538		429,988
Biogen, Inc.*		1,834		426,992
Regeneron Pharmaceuticals, Inc.*		1,287		357,014
Alexion Pharmaceuticals, Inc.*		3,069		300,578
Seattle Genetics, Inc.*		3,128		267,131
Incyte Corp.*		3,423		254,089
BioMarin Pharmaceutical, Inc.*		3,173		213,860
Exact Sciences Corp.*		2,306		208,393
Alnylam Pharmaceuticals, Inc.*		2,372		190,756
Ionis Pharmaceuticals, Inc.*		3,152		188,836
Sage Therapeutics, Inc.*		1,233		172,978
Exelixis, Inc.*		8,004		141,551
ACADIA Pharmaceuticals, Inc.*		3,933		141,549
Bluebird Bio, Inc.*		1,505		138,189
United Therapeutics Corp.*		1,457		116,196
Nektar Therapeutics*		6,252		113,880
Intercept Pharmaceuticals, Inc.*		1,440		95,559
Myriad Genetics, Inc.*		3,329		95,309
Immunomedics, Inc.*		6,904		91,547
PTC Therapeutics, Inc.*		2,666		90,164
Ligand Pharmaceuticals, Inc. — Class B*		871		86,699
Total Biotechnology				6,384,260
Healthcare-Services - 13.4%
UnitedHealth Group, Inc.		4,203		913,396
Anthem, Inc.		2,091		502,049
HCA Healthcare, Inc.		3,412		410,873
Humana, Inc.		1,450		370,721
IQVIA Holdings, Inc.*		2,323		347,010
Centene Corp.*		6,165		266,698
Laboratory Corporation of America Holdings*		1,568		263,424
Quest Diagnostics, Inc.		2,337		250,129
Universal Health Services, Inc. — Class B		1,596		237,405
WellCare Health Plans, Inc.*		895		231,957
DaVita, Inc.*		3,232		184,450
Molina Healthcare, Inc.*		1,530		167,872
Teladoc Health, Inc.*,1		2,087		141,332
Amedisys, Inc.*		1,016		133,106

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
HEALTH CARE FUND

	Shares		Value
Acadia Healthcare Company, Inc.*		3,412	$	106,045
Total Healthcare-Services				4,526,467
Electronics - 2.5%
Agilent Technologies, Inc.		4,123		315,946
Mettler-Toledo International, Inc.*		388		273,307
Waters Corp.*		1,131		252,473
Total Electronics				841,726
Software - 2.3%
Veeva Systems, Inc. — Class A*		2,101		320,802
Cerner Corp.		4,484		305,674
Medidata Solutions, Inc.*		1,714		156,831
Total Software				783,307
Commercial Services - 0.4%
HealthEquity, Inc.*		2,233		127,605
Total Common Stocks
(Cost $28,378,240)				33,726,967
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	120,025		120,025
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		38,596		38,596
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		34,736		34,736
Total Repurchase Agreements
(Cost $193,357)				193,357
SECURITIES LENDING COLLATERAL†,3 - 1.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		346,447	$	346,447
Total Securities Lending Collateral
(Cost $346,447)				346,447
Total Investments - 101.4%
(Cost $28,918,044)			$	34,266,771
Other Assets & Liabilities, net - (1.4%)				(464,821	)
Total Net Assets - 100.0%			$	33,801,950

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
HEALTH CARE FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	33,726,967	$	—	$	—	$	33,726,967
Repurchase Agreements		—		193,357		—		193,357
Securities Lending Collateral		346,447		—		—		346,447
Total Assets	$	34,073,414	$	193,357	$	—	$	34,266,771

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

HEALTH CARE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $330,404 of securities loaned (cost $28,724,687)	$	34,073,414
Repurchase agreements, at value (cost $193,357)		193,357
Receivables:
Dividends		20,979
Securities lending income		5,999
Foreign tax reclaims		3,603
Fund shares sold		3,505
Interest		12
Total assets		34,300,869
Liabilities:
Payable for:
Return of securities lending collateral		346,447
Fund shares redeemed		66,379
Management fees		24,773
Transfer agent and administrative fees		7,286
Distribution and service fees		4,820
Portfolio accounting fees		2,914
Trustees’ fees*		870
Miscellaneous		45,430
Total liabilities		498,919
Commitments and contingent liabilities (Note 9)		—
Net assets	$	33,801,950
Net assets consist of:
Paid in capital	$	32,818,798
Total distributable earnings (loss)		983,152
Net assets	$	33,801,950
Investor Class:
Net assets	$	20,467,895
Capital shares outstanding		663,994
Net asset value per share	$	30.83
A-Class:
Net assets	$	8,283,814
Capital shares outstanding		297,240
Net asset value per share	$	27.87
Maximum offering price per share (Net asset value divided by 95.25%)	$	29.26
C-Class:
Net assets	$	3,503,183
Capital shares outstanding		147,480
Net asset value per share	$	23.75
H-Class:
Net assets	$	1,547,058
Capital shares outstanding		57,665
Net asset value per share	$	26.83

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $47)	$	236,084
Interest		2,650
Income from securities lending, net		28,294
Total investment income		267,028
Expenses:
Management fees		180,604
Distribution and service fees:
A-Class		7,026
C-Class		19,615
H-Class		3,387
Transfer agent and administrative fees		53,119
Registration fees		37,018
Portfolio accounting fees		21,247
Trustees’ fees*		3,370
Custodian fees		3,184
Line of credit fees		68
Miscellaneous		12,305
Total expenses		340,943
Net investment loss		(73,915	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		10,144,916
Net realized gain		10,144,916
Net change in unrealized appreciation (depreciation) on:
Investments		(12,213,235	)
Net change in unrealized appreciation (depreciation)		(12,213,235	)
Net realized and unrealized loss		(2,068,319	)
Net decrease in net assets resulting from operations	$	(2,142,234	)

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

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

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(73,915	)	$	(469,696	)
Net realized gain (loss) on investments		10,144,916			(7,605,390	)
Net change in unrealized appreciation (depreciation) on investments		(12,213,235	)		11,915,715
Net increase (decrease) in net assets resulting from operations		(2,142,234	)		3,840,629
Distributions to shareholders:
Investor Class		—			(1,361,205	)
A-Class		—			(91,162	)
C-Class		—			(89,879	)
H-Class		—			(269,508	)
Total distributions to shareholders		—			(1,811,754	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		46,881,998			274,055,410
A-Class		5,602,740			23,446,942
C-Class		1,395,546			5,228,919
H-Class		1,708,404			93,563,271
Distributions reinvested
Investor Class		—			1,349,970
A-Class		—			89,439
C-Class		—			88,910
H-Class		—			269,487
Cost of shares redeemed
Investor Class		(89,080,873	)		(279,558,964	)
A-Class		(1,924,246	)		(22,601,547	)
C-Class		(2,058,937	)		(6,354,868	)
H-Class		(7,842,023	)		(91,153,918	)
Net decrease from capital share transactions		(45,317,391	)		(1,576,949	)
Net increase (decrease) in net assets		(47,459,625	)		451,926
Net assets:
Beginning of period		81,261,575			80,809,649
End of period	$	33,801,950		$	81,261,575
Capital share activity:
Shares sold
Investor Class		1,481,430			8,641,302
A-Class		197,319			858,664
C-Class		57,367			212,824
H-Class		62,166			3,465,327
Shares issued from reinvestment of distributions
Investor Class		—			44,480
A-Class		—			3,252
C-Class		—			3,772
H-Class		—			10,185
Shares redeemed
Investor Class		(2,821,058	)		(9,021,071	)
A-Class		(67,845	)		(812,305	)
C-Class		(84,816	)		(259,344	)
H-Class		(286,489	)		(3,400,098	)
Net decrease in shares		(1,461,926	)		(253,012	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	32.03		$	28.88		$	27.82		$	28.65		$	35.83		$	27.76
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.13	)		(.13	)		(.10	)		(.04	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		(1.17	)		3.78			3.82			2.79			(5.11	)		8.50
Total from investment operations		(1.20	)		3.65			3.69			2.69			(5.15	)		8.43
Less distributions from:
Net realized gains		—			(.50	)		(2.63	)		(3.52	)		(2.03	)		(.36	)
Total distributions		—			(.50	)		(2.63	)		(3.52	)		(2.03	)		(.36	)
Net asset value, end of period	$	30.83		$	32.03		$	28.88		$	27.82		$	28.65		$	35.83
Total Return		(3.75	%)		12.75	%		13.38	%		10.20	%		(14.82	%)		30.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,468		$	64,185		$	67,542		$	36,468		$	44,663		$	175,397
Ratios to average net assets:
Net investment income (loss)		(0.21	%)		(0.42	%)		(0.43	%)		(0.36	%)		(0.11	%)		(0.23	%)
Total expenses		1.46	%		1.46	%		1.38	%		1.37	%		1.34	%		1.34	%
Portfolio turnover rate		85	%		341	%		394	%		699	%		249	%		176	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	29.00		$	26.26		$	25.56		$	26.68		$	33.60		$	26.11
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.19	)		(.19	)		(.17	)		(.13	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		(1.07	)		3.43			3.52			2.57			(4.76	)		7.99
Total from investment operations		(1.13	)		3.24			3.33			2.40			(4.89	)		7.85
Less distributions from:
Net realized gains		—			(.50	)		(2.63	)		(3.52	)		(2.03	)		(.36	)
Total distributions		—			(.50	)		(2.63	)		(3.52	)		(2.03	)		(.36	)
Net asset value, end of period	$	27.87		$	29.00		$	26.26		$	25.56		$	26.68		$	33.60
Total Returnc		(3.90	%)		12.46	%		13.14	%		9.85	%		(15.04	%)		30.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,284		$	4,865		$	3,102		$	4,626		$	6,410		$	28,704
Ratios to average net assets:
Net investment income (loss)		(0.44	%)		(0.68	%)		(0.69	%)		(0.62	%)		(0.42	%)		(0.47	%)
Total expenses		1.71	%		1.72	%		1.63	%		1.62	%		1.59	%		1.59	%
Portfolio turnover rate		85	%		341	%		394	%		699	%		249	%		176	%

78 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	24.81		$	22.69		$	22.58		$	24.13		$	30.82		$	24.16
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.35	)		(.34	)		(.33	)		(.33	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		(.91	)		2.97			3.08			2.30			(4.33	)		7.35
Total from investment operations		(1.06	)		2.62			2.74			1.97			(4.66	)		7.02
Less distributions from:
Net realized gains		—			(.50	)		(2.63	)		(3.52	)		(2.03	)		(.36	)
Total distributions		—			(.50	)		(2.63	)		(3.52	)		(2.03	)		(.36	)
Net asset value, end of period	$	23.75		$	24.81		$	22.69		$	22.58		$	24.13		$	30.82
Total Returnc		(4.27	%)		11.68	%		12.24	%		9.07	%		(15.67	%)		29.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,503		$	4,340		$	4,940		$	4,959		$	8,284		$	11,551
Ratios to average net assets:
Net investment income (loss)		(1.22	%)		(1.42	%)		(1.42	%)		(1.37	%)		(1.17	%)		(1.24	%)
Total expenses		2.46	%		2.46	%		2.38	%		2.37	%		2.35	%		2.34	%
Portfolio turnover rate		85	%		341	%		394	%		699	%		249	%		176	%

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	27.91		$	25.29		$	24.72		$	25.91		$	32.71		$	25.49
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.18	)		(.21	)		(.16	)		(.14	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		(1.01	)		3.30			3.41			2.49			(4.63	)		7.79
Total from investment operations		(1.08	)		3.12			3.20			2.33			(4.77	)		7.58
Less distributions from:
Net realized gains		—			(.50	)		(2.63	)		(3.52	)		(2.03	)		(.36	)
Total distributions		—			(.50	)		(2.63	)		(3.52	)		(2.03	)		(.36	)
Net asset value, end of period	$	26.83		$	27.91		$	25.29		$	24.72		$	25.91		$	32.71
Total Return		(3.87	%)		12.46	%		13.06	%		9.87	%		(15.08	%)		29.89	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,547		$	7,871		$	5,225		$	4,809		$	5,244		$	50,135
Ratios to average net assets:
Net investment income (loss)		(0.48	%)		(0.66	%)		(0.77	%)		(0.62	%)		(0.44	%)		(0.73	%)
Total expenses		1.71	%		1.73	%		1.64	%		1.62	%		1.71	%		1.85	%
Portfolio turnover rate		85	%		341	%		394	%		699	%		249	%		176	%

a	Unaudited figures for the period ended September 30, 2019. 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 NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 79

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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	7.5%
Amazon.com, Inc.	7.4%
Facebook, Inc. — Class A	5.7%
Cisco Systems, Inc.	3.8%
Alibaba Group Holding Ltd. ADR	3.7%
salesforce.com, Inc.	2.9%
PayPal Holdings, Inc.	2.8%
Netflix, Inc.	2.8%
Booking Holdings, Inc.	2.3%
Activision Blizzard, Inc.	1.6%
Top Ten Total	40.5%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	(3.41%)	(4.42%)	11.77%	14.04%
A-Class Shares	(3.54%)	(4.66%)	11.49%	13.75%
A-Class Shares with sales charge‡	(8.11%)	(9.19%)	10.41%	13.20%
C-Class Shares	(3.89%)	(5.37%)	10.66%	12.89%
C-Class Shares with CDSC§	(4.85%)	(6.17%)	10.66%	12.89%
H-Class Shares**	(3.55%)	(4.67%)	11.44%	13.58%
S&P 500 Information Technology Index	9.60%	8.60%	18.21%	17.11%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

80 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
INTERNET FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Internet - 59.8%
Alphabet, Inc. — Class A*		2,525	$	3,083,379
Amazon.com, Inc.*		1,753		3,043,050
Facebook, Inc. — Class A*		13,009		2,316,643
Alibaba Group Holding Ltd. ADR*		9,040		1,511,759
Netflix, Inc.*		4,256		1,138,991
Booking Holdings, Inc.*		489		959,716
eBay, Inc.		15,305		596,589
Baidu, Inc. ADR*		5,765		592,411
Twitter, Inc.*		14,363		591,756
JD.com, Inc. ADR*		18,035		508,767
VeriSign, Inc.*		2,636		497,229
Expedia Group, Inc.		3,536		475,274
Snap, Inc. — Class A*		29,869		471,930
Match Group, Inc.1		6,288		449,215
IAC/InterActiveCorp*		2,023		440,953
MercadoLibre, Inc.*		767		422,793
Shopify, Inc. — Class A*		1,316		410,145
Pinterest, Inc. — Class A*,1		14,144		374,109
GoDaddy, Inc. — Class A*		5,525		364,540
Ctrip.com International Ltd. ADR*		12,177		356,664
Okta, Inc.*		3,592		353,668
Wayfair, Inc. — Class A*		2,970		332,996
Chewy, Inc. — Class A*		13,531		332,592
Spotify Technology S.A.*		2,889		329,346
Pinduoduo, Inc. ADR*		10,004		322,329
F5 Networks, Inc.*		2,246		315,383
Weibo Corp. ADR*		6,656		297,856
Wix.com Ltd.*		2,452		286,247
Etsy, Inc.*		4,813		271,935
YY, Inc. ADR*		4,775		268,498
Zillow Group, Inc. — Class C*,1		8,988		268,022
Zillow Group, Inc. — Class A*		9,014		266,319
Baozun, Inc. ADR*,1		6,164		263,203
Autohome, Inc. ADR*		3,116		259,033
Anaplan, Inc.*		5,401		253,847
SINA Corp.*		6,442		252,462
TripAdvisor, Inc.*		6,348		245,541
GrubHub, Inc.*		4,359		245,019
58.com, Inc. ADR*		4,912		242,211
Cargurus, Inc.*		6,275		194,211
Yelp, Inc. — Class A*		4,856		168,746
Stamps.com, Inc.*		1,732		128,947
Total Internet				24,504,324
Software - 20.2%
salesforce.com, Inc.*		8,088		1,200,583
Activision Blizzard, Inc.		12,726		673,460
Electronic Arts, Inc.*		5,791		566,476
Veeva Systems, Inc. — Class A*		3,412		520,978
Akamai Technologies, Inc.*		4,599		420,257
Twilio, Inc. — Class A*,1		3,635		399,705
Take-Two Interactive Software, Inc.*		3,107		389,431
Citrix Systems, Inc.		3,948		381,061
NetEase, Inc. ADR		1,402		373,184
DocuSign, Inc.*		5,563		344,461
Sea Ltd. ADR*		9,755		301,917
Dropbox, Inc. — Class A*		14,782		298,153
Coupa Software, Inc.*		2,267		293,735
Momo, Inc. ADR		8,722		270,207
Bilibili, Inc. ADR*		19,068		269,240
MongoDB, Inc.*		2,220		267,466
HubSpot, Inc.*		1,762		267,137
HUYA, Inc. ADR*		10,540		249,166
j2 Global, Inc.		2,465		223,871
Cornerstone OnDemand, Inc.*		3,583		196,420
New Relic, Inc.*		3,176		195,165
Box, Inc. — Class A*		9,991		165,451
Total Software				8,267,524
Telecommunications - 11.0%
Cisco Systems, Inc.		31,627		1,562,690
Motorola Solutions, Inc.		3,343		569,681
Arista Networks, Inc.*		1,894		452,514
Juniper Networks, Inc.		12,949		320,488
Ubiquiti, Inc.1		2,572		304,165
Ciena Corp.*		6,734		264,175
GDS Holdings Ltd. ADR*		6,232		249,778
ViaSat, Inc.*		3,030		228,219
LogMeIn, Inc.		2,906		206,210
Viavi Solutions, Inc.*		13,459		188,493
CommScope Holding Company, Inc.*		14,239		167,451
Total Telecommunications				4,513,864
Commercial Services - 4.3%
PayPal Holdings, Inc.*		11,273		1,167,770
CoStar Group, Inc.*		832		493,542
2U, Inc.*		6,674		108,653
Total Commercial Services				1,769,965
Diversified Financial Services - 2.1%
TD Ameritrade Holding Corp.		11,208		523,413
E*TRADE Financial Corp.		7,839		342,486
Total Diversified Financial Services				865,899
Computers - 1.4%
Nutanix, Inc. — Class A*		9,177		240,896
Lumentum Holdings, Inc.*		3,875		207,545
NetScout Systems, Inc.*		6,078		140,159
Total Computers				588,600
Retail - 0.6%
Qurate Retail, Inc. — Class A*		21,961		226,528
Electronics - 0.1%
II-VI, Inc.*		1,689		59,462
Total Common Stocks
(Cost $38,706,004)				40,796,166

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
INTERNET FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.3%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	77,594	$	77,594
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		24,952		24,952
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		22,456		22,456
Total Repurchase Agreements
(Cost $125,002)				125,002
	Shares		Value
SECURITIES LENDING COLLATERAL†,3 - 4.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		1,645,106	$	1,645,106
Total Securities Lending Collateral
(Cost $1,645,106)				1,645,106
Total Investments - 103.8%
(Cost $40,476,112)			$	42,566,274
Other Assets & Liabilities, net - (3.8%)				(1,564,802	)
Total Net Assets - 100.0%			$	41,001,472

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	40,796,166	$	—	$	—	$	40,796,166
Repurchase Agreements		—		125,002		—		125,002
Securities Lending Collateral		1,645,106		—		—		1,645,106
Total Assets	$	42,441,272	$	125,002	$	—	$	42,566,274

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

INTERNET FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $1,619,523 of securities loaned (cost $40,351,110)	$	42,441,272
Repurchase agreements, at value (cost $125,002)		125,002
Cash		118,778
Receivables:
Fund shares sold		366,534
Dividends		2,011
Securities lending income		1,747
Interest		8
Total assets		43,055,352
Liabilities:
Payable for:
Return of securities lending collateral		1,645,106
Securities purchased		278,515
Fund shares redeemed		47,716
Management fees		27,821
Transfer agent and administrative fees		8,183
Portfolio accounting fees		3,273
Distribution and service fees		2,529
Trustees’ fees*		764
Miscellaneous		39,973
Total liabilities		2,053,880
Commitments and contingent liabilities (Note 9)		—
Net assets	$	41,001,472
Net assets consist of:
Paid in capital	$	39,138,413
Total distributable earnings (loss)		1,863,059
Net assets	$	41,001,472
Investor Class:
Net assets	$	36,079,014
Capital shares outstanding		314,421
Net asset value per share	$	114.75
A-Class:
Net assets	$	1,695,125
Capital shares outstanding		15,949
Net asset value per share	$	106.28
Maximum offering price per share (Net asset value divided by 95.25%)	$	111.58
C-Class:
Net assets	$	2,472,558
Capital shares outstanding		26,967
Net asset value per share	$	91.69
H-Class:
Net assets	$	754,775
Capital shares outstanding		7,347
Net asset value per share	$	102.73

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $1,486)	$	58,015
Interest		2,682
Income from securities lending, net		6,110
Total investment income		66,807
Expenses:
Management fees		174,387
Distribution and service fees:
A-Class		2,519
C-Class		14,442
H-Class		5,625
Transfer agent and administrative fees		51,290
Portfolio accounting fees		20,516
Trustees’ fees*		3,414
Custodian fees		2,858
Line of credit fees		2
Miscellaneous		47,623
Total expenses		322,676
Net investment loss		(255,869	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,180,180
Net realized gain		2,180,180
Net change in unrealized appreciation (depreciation) on:
Investments		(6,331,147	)
Net change in unrealized appreciation (depreciation)		(6,331,147	)
Net realized and unrealized loss		(4,150,967	)
Net decrease in net assets resulting from operations	$	(4,406,836	)

^* 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 | 83

INTERNET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(255,869	)	$	(686,372	)
Net realized gain on investments		2,180,180			4,214,037
Net change in unrealized appreciation (depreciation) on investments		(6,331,147	)		(1,071,761	)
Net increase (decrease) in net assets resulting from operations		(4,406,836	)		2,455,904
Distributions to shareholders:
Investor Class		—			(2,159,316	)
A-Class		—			(338,414	)
C-Class		—			(434,832	)
H-Class		—			(182,752	)
Total distributions to shareholders		—			(3,115,314	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		71,641,446			123,670,906
A-Class		395,600			7,631,660
C-Class		1,248,890			3,862,907
H-Class		13,637,354			119,411,263
Distributions reinvested
Investor Class		—			2,113,338
A-Class		—			324,899
C-Class		—			429,191
H-Class		—			182,647
Cost of shares redeemed
Investor Class		(47,166,891	)		(151,216,911	)
A-Class		(694,330	)		(9,166,861	)
C-Class		(1,737,448	)		(3,937,169	)
H-Class		(22,382,003	)		(138,271,570	)
Net increase (decrease) from capital share transactions		14,942,618			(44,965,700	)
Net increase (decrease) in net assets		10,535,782			(45,625,110	)
Net assets:
Beginning of period		30,465,690			76,090,800
End of period	$	41,001,472		$	30,465,690
Capital share activity:
Shares sold
Investor Class		583,763			969,839
A-Class		3,515			70,880
C-Class		12,879			36,507
H-Class		126,469			1,015,803
Shares issued from reinvestment of distributions
Investor Class		—			20,344
A-Class		—			3,370
C-Class		—			5,130
H-Class		—			1,960
Shares redeemed
Investor Class		(399,679	)		(1,187,111	)
A-Class		(6,205	)		(84,558	)
C-Class		(17,854	)		(38,110	)
H-Class		(211,891	)		(1,178,750	)
Net increase (decrease) in shares		90,997			(364,696	)

84 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	118.80		$	124.80		$	95.33		$	77.91		$	77.87		$	75.05
Income (loss) from investment operations:
Net investment income (loss)b		(.70	)		(1.29	)		(.80	)		(.60	)		(.41	)		(.49	)
Net gain (loss) on investments (realized and unrealized)		(3.35	)		10.79			30.27			18.02			.78			5.27
Total from investment operations		(4.05	)		9.50			29.47			17.42			.37			4.78
Less distributions from:
Net realized gains		—			(15.50	)		—			—			(.33	)		(1.96	)
Total distributions		—			(15.50	)		—			—			(.33	)		(1.96	)
Net asset value, end of period	$	114.75		$	118.80		$	124.80		$	95.33		$	77.91		$	77.87
Total Return		(3.41	%)		9.39	%		30.91	%		22.36	%		0.46	%		6.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	36,079		$	15,484		$	40,843		$	17,670		$	24,435		$	8,328
Ratios to average net assets:
Net investment income (loss)		(1.15	%)		(1.00	%)		(0.71	%)		(0.70	%)		(0.52	%)		(0.64	%)
Total expenses		1.46	%		1.45	%		1.38	%		1.37	%		1.35	%		1.35	%
Portfolio turnover rate		163	%		349	%		305	%		518	%		520	%		495	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	110.18		$	117.20		$	89.75		$	73.54		$	73.71		$	71.32
Income (loss) from investment operations:
Net investment income (loss)b		(.76	)		(1.46	)		(1.01	)		(.76	)		(.69	)		(.61	)
Net gain (loss) on investments (realized and unrealized)		(3.14	)		9.94			28.46			16.97			.85			4.96
Total from investment operations		(3.90	)		8.48			27.45			16.21			.16			4.35
Less distributions from:
Net realized gains		—			(15.50	)		—			—			(.33	)		(1.96	)
Total distributions		—			(15.50	)		—			—			(.33	)		(1.96	)
Net asset value, end of period	$	106.28		$	110.18		$	117.20		$	89.75		$	73.54		$	73.71
Total Returnc		(3.54	%)		9.13	%		30.57	%		22.04	%		0.20	%		6.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,695		$	2,054		$	3,393		$	2,139		$	1,803		$	2,022
Ratios to average net assets:
Net investment income (loss)		(1.35	%)		(1.27	%)		(0.96	%)		(0.95	%)		(0.92	%)		(0.86	%)
Total expenses		1.71	%		1.71	%		1.63	%		1.62	%		1.60	%		1.61	%
Portfolio turnover rate		163	%		349	%		305	%		518	%		520	%		495	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 85

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	95.40		$	104.40		$	80.55		$	66.49		$	67.17		$	65.64
Income (loss) from investment operations:
Net investment income (loss)b		(1.02	)		(2.08	)		(1.60	)		(1.24	)		(1.03	)		(1.11	)
Net gain (loss) on investments (realized and unrealized)		(2.69	)		8.58			25.45			15.30			.68			4.60
Total from investment operations		(3.71	)		6.50			23.85			14.06			(.35	)		3.49
Less distributions from:
Net realized gains		—			(15.50	)		—			—			(.33	)		(1.96	)
Total distributions		—			(15.50	)		—			—			(.33	)		(1.96	)
Net asset value, end of period	$	91.69		$	95.40		$	104.40		$	80.55		$	66.49		$	67.17
Total Returnc		(3.89	%)		8.31	%		29.61	%		21.13	%		(0.54	%)		5.34	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,473		$	3,047		$	2,967		$	2,321		$	2,798		$	2,436
Ratios to average net assets:
Net investment income (loss)		(2.10	%)		(2.01	%)		(1.70	%)		(1.71	%)		(1.53	%)		(1.68	%)
Total expenses		2.46	%		2.46	%		2.38	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		163	%		349	%		305	%		518	%		520	%		495	%

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	106.51		$	113.84		$	87.18		$	71.40		$	71.64		$	69.58
Income (loss) from investment operations:
Net investment income (loss)b		(.71	)		(1.51	)		(1.07	)		(.78	)		(.72	)		(.78	)
Net gain (loss) on investments (realized and unrealized)		(3.07	)		9.68			27.73			16.56			.81			4.80
Total from investment operations		(3.78	)		8.17			26.66			15.78			.09			4.02
Less distributions from:
Net realized gains		—			(15.50	)		—			—			(.33	)		(1.96	)
Total distributions		—			(15.50	)		—			—			(.33	)		(1.96	)
Net asset value, end of period	$	102.73		$	106.51		$	113.84		$	87.18		$	71.40		$	71.64
Total Return		(3.55	%)		9.12	%		30.59	%		22.09	%		0.11	%		5.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	755		$	9,880		$	28,889		$	2,384		$	7,132		$	1,830
Ratios to average net assets:
Net investment income (loss)		(1.30	%)		(1.27	%)		(1.04	%)		(1.03	%)		(0.97	%)		(1.12	%)
Total expenses		1.71	%		1.70	%		1.63	%		1.62	%		1.67	%		1.85	%
Portfolio turnover rate		163	%		349	%		305	%		518	%		520	%		495	%

a	Unaudited figures for the period ended September 30, 2019. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
Walt Disney Co.	4.3%
Comcast Corp. — Class A	4.0%
McDonald’s Corp.	3.6%
Philip Morris International, Inc.	3.2%
Netflix, Inc.	3.0%
Altria Group, Inc.	2.8%
Starbucks Corp.	2.8%
Charter Communications, Inc. — Class A	2.8%
Las Vegas Sands Corp.	1.9%
Activision Blizzard, Inc.	1.8%
Top Ten Total	30.2%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	1.80%	0.09%	7.78%	13.67%
A-Class Shares	1.68%	(0.16%)	7.51%	13.38%
A-Class Shares with sales charge‡	(3.15%)	(4.90%)	6.47%	12.82%
C-Class Shares	1.27%	(0.91%)	6.71%	12.52%
C-Class Shares with CDSC§	0.27%	(1.81%)	6.71%	12.52%
H-Class Shares**	1.65%	(0.18%)	7.48%	13.22%
S&P 500 Consumer Discretionary Index	5.82%	2.36%	14.03%	17.68%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 87

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
LEISURE FUND

	Shares		Value
COMMON STOCKS† - 99.8%
Media - 25.0%
Walt Disney Co.		4,573	$	595,953
Comcast Corp. — Class A		12,147		547,587
Charter Communications, Inc. — Class A*		934		384,920
Fox Corp. — Class A		5,497		173,348
Discovery, Inc. — Class A*,1		6,469		172,269
Liberty Broadband Corp. — Class C*		1,589		166,321
Altice USA, Inc. — Class A*		5,753		164,996
DISH Network Corp. — Class A*		4,633		157,846
CBS Corp. — Class B		3,746		151,226
Viacom, Inc. — Class B		5,052		121,400
Liberty Global plc — Class C*		5,030		119,664
News Corp. — Class A		8,004		111,416
Cable One, Inc.		84		105,395
World Wrestling Entertainment, Inc. — Class A		1,308		93,064
Nexstar Media Group, Inc. — Class A		854		87,373
New York Times Co. — Class A		2,991		85,184
Sinclair Broadcast Group, Inc. — Class A		1,791		76,547
TEGNA, Inc.		4,872		75,662
AMC Networks, Inc. — Class A*		1,340		65,874
Total Media				3,456,045
Retail - 19.1%
McDonald’s Corp.		2,326		499,416
Starbucks Corp.		4,402		389,225
Yum! Brands, Inc.		1,979		224,478
Chipotle Mexican Grill, Inc. — Class A*		222		186,584
Darden Restaurants, Inc.		1,263		149,312
Yum China Holdings, Inc.		2,796		127,022
Restaurant Brands International, Inc.		1,781		126,700
Domino’s Pizza, Inc.		505		123,518
Dunkin’ Brands Group, Inc.		1,237		98,168
Wendy’s Co.		4,065		81,219
Texas Roadhouse, Inc. — Class A		1,456		76,469
Cracker Barrel Old Country Store, Inc.1		468		76,120
Shake Shack, Inc. — Class A*		735		72,059
Wingstop, Inc.		710		61,969
Jack in the Box, Inc.		665		60,595
Cheesecake Factory, Inc.		1,316		54,851
Papa John’s International, Inc.1		968		50,675
Brinker International, Inc.		1,146		48,900
Bloomin’ Brands, Inc.		2,541		48,101
Dave & Buster’s Entertainment, Inc.		1,081		42,105
BJ’s Restaurants, Inc.		950		36,898
Total Retail				2,634,384
Lodging - 12.2%
Las Vegas Sands Corp.		4,597		265,523
Marriott International, Inc. — Class A		1,975		245,631
Hilton Worldwide Holdings, Inc.		2,120		197,393
MGM Resorts International		5,245		145,391
Wynn Resorts Ltd.		1,249		135,791
Melco Resorts & Entertainment Ltd. ADR		5,581		108,327
Hyatt Hotels Corp. — Class A		1,446		106,527
Huazhu Group Ltd. ADR		3,226		106,523
Wyndham Hotels & Resorts, Inc.		1,669		86,354
Choice Hotels International, Inc.		964		85,757
Wyndham Destinations, Inc.		1,741		80,121
Hilton Grand Vacations, Inc.*		1,968		62,976
Boyd Gaming Corp.		2,569		61,528
Total Lodging				1,687,842
Entertainment - 8.7%
Live Nation Entertainment, Inc.*		2,226		147,673
Vail Resorts, Inc.		511		116,283
Stars Group, Inc.*		7,038		105,429
Madison Square Garden Co. — Class A*		372		98,029
Churchill Downs, Inc.		698		86,172
Cinemark Holdings, Inc.		2,212		85,472
Marriott Vacations Worldwide Corp.		800		82,888
Six Flags Entertainment Corp.		1,562		79,334
Eldorado Resorts, Inc.*,1		1,667		66,463
International Game Technology plc		4,623		65,693
Red Rock Resorts, Inc. — Class A		2,936		59,616
Penn National Gaming, Inc.*		3,075		57,272
SeaWorld Entertainment, Inc.*		2,161		56,878
Scientific Games Corp. — Class A*		2,507		51,017
AMC Entertainment Holdings, Inc. — Class A1		3,952		42,286
Total Entertainment				1,200,505
Software - 7.8%
Activision Blizzard, Inc.		4,659		246,554
Electronic Arts, Inc.*		2,120		207,378
NetEase, Inc. ADR		575		153,054
Take-Two Interactive Software, Inc.*		1,137		142,512
Sea Ltd. ADR*		3,916		121,200
Bilibili, Inc. ADR*		7,560		106,747
HUYA, Inc. ADR*		4,167		98,508
Total Software				1,075,953
Agriculture - 6.8%
Philip Morris International, Inc.		5,806		440,850
Altria Group, Inc.		9,596		392,476
British American Tobacco plc ADR		2,981		109,999
Total Agriculture				943,325
Leisure Time - 6.7%
Carnival Corp.		4,644		202,989
Royal Caribbean Cruises Ltd.		1,690		183,078
Norwegian Cruise Line Holdings Ltd.*		2,447		126,681
Harley-Davidson, Inc.		2,644		95,105
Polaris, Inc.		1,021		89,858
Planet Fitness, Inc. — Class A*		1,526		88,310
Brunswick Corp.		1,575		82,089
Callaway Golf Co.		2,621		50,873
Total Leisure Time				918,983
Beverages - 6.7%
Constellation Brands, Inc. — Class A		1,180		244,591
Brown-Forman Corp. — Class B		3,376		211,945

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LEISURE FUND

	Shares		Value
Molson Coors Brewing Co. — Class B		2,510	$	144,325
Anheuser-Busch InBev S.A. ADR		1,308		124,456
Diageo plc ADR		644		105,307
Boston Beer Company, Inc. — Class A*		242		88,107
Total Beverages				918,731
Internet - 4.8%
Netflix, Inc.*		1,558		416,952
Spotify Technology S.A.*		1,180		134,520
iQIYI, Inc. ADR*,1		7,319		118,055
Total Internet				669,527
Toys, Games & Hobbies - 1.1%
Hasbro, Inc.		1,252		148,600
Food Service - 0.9%
Aramark		2,990		130,304
Total Common Stocks
(Cost $12,223,014)				13,784,199
RIGHTS††† - 0.0%
Media - 0.0%
Nexstar Media Group, Inc.*,2		8,160		—
Total Rights
(Cost $—)				—

	Face Amount		Value
REPURCHASE AGREEMENTS††,3 - 0.3%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	23,677	$	23,677
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		7,614		7,614
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		6,852		6,852
Total Repurchase Agreements
(Cost $38,143)				38,143
	Shares
SECURITIES LENDING COLLATERAL†,4 - 2.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%5		278,172		278,172
Total Securities Lending Collateral
(Cost $278,172)				278,172
Total Investments - 102.1%
(Cost $12,539,329)			$	14,100,514
Other Assets & Liabilities, net - (2.1%)				(289,012	)
Total Net Assets - 100.0%			$	13,811,502

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Security was fair valued by the Valuation Committee at September 30, 2019. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
3	Repurchase Agreements — See Note 6.
4	Securities lending collateral — See Note 7.
5	Rate indicated is the 7-day yield as of September 30, 2019.
	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 | 89

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
LEISURE FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	13,784,199	$	—	$	—		$	13,784,199
Rights		—		—		—	*		—
Repurchase Agreements		—		38,143		—			38,143
Securities Lending Collateral		278,172		—		—			278,172
Total Assets	$	14,062,371	$	38,143	$	—		$	14,100,514

^* Security has a market value of $0.

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

LEISURE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $272,018 of securities loaned (cost $12,501,186)	$	14,062,371
Repurchase agreements, at value (cost $38,143)		38,143
Receivables:
Dividends		24,466
Fund shares sold		13,546
Foreign tax reclaims		2,866
Securities lending income		67
Interest		2
Total assets		14,141,461
Liabilities:
Payable for:
Return of securities lending collateral		278,172
Fund shares redeemed		16,663
Management fees		11,139
Transfer agent and administrative fees		3,276
Distribution and service fees		1,620
Portfolio accounting fees		1,310
Trustees’ fees*		335
Miscellaneous		17,444
Total liabilities		329,959
Commitments and contingent liabilities (Note 9)		—
Net assets	$	13,811,502
Net assets consist of:
Paid in capital	$	11,242,076
Total distributable earnings (loss)		2,569,426
Net assets	$	13,811,502
Investor Class:
Net assets	$	9,743,339
Capital shares outstanding		138,752
Net asset value per share	$	70.22
A-Class:
Net assets	$	1,798,464
Capital shares outstanding		28,002
Net asset value per share	$	64.23
Maximum offering price per share (Net asset value divided by 95.25%)	$	67.43
C-Class:
Net assets	$	581,572
Capital shares outstanding		10,287
Net asset value per share	$	56.53
H-Class:
Net assets	$	1,688,127
Capital shares outstanding		27,066
Net asset value per share	$	62.37

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $1,011)	$	139,897
Interest		1,269
Income from securities lending, net		536
Total investment income		141,702
Expenses:
Management fees		77,640
Distribution and service fees:
A-Class		1,742
C-Class		3,341
H-Class		4,600
Transfer agent and administrative fees		22,835
Portfolio accounting fees		9,134
Trustees’ fees*		1,835
Custodian fees		1,278
Line of credit fees		15
Miscellaneous		21,089
Total expenses		143,509
Net investment loss		(1,807	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,336,173
Net realized gain		2,336,173
Net change in unrealized appreciation (depreciation) on:
Investments		(2,437,929	)
Net change in unrealized appreciation (depreciation)		(2,437,929	)
Net realized and unrealized loss		(101,756	)
Net decrease in net assets resulting from operations	$	(103,563	)

^* 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 | 91

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(1,807	)	$	41,239
Net realized gain on investments		2,336,173			1,581,983
Net change in unrealized appreciation (depreciation) on investments		(2,437,929	)		(249,813	)
Net increase (decrease) in net assets resulting from operations		(103,563	)		1,373,409
Distributions to shareholders:
Investor Class		—			(544,748	)
A-Class		—			(159,698	)
C-Class		—			(75,803	)
H-Class		—			(112,344	)
Total distributions to shareholders		—			(892,593	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		26,344,509			38,144,920
A-Class		1,834,577			2,186,461
C-Class		29,136			101,371
H-Class		13,397,521			46,226,618
Distributions reinvested
Investor Class		—			530,279
A-Class		—			139,178
C-Class		—			75,270
H-Class		—			111,434
Cost of shares redeemed
Investor Class		(28,534,404	)		(42,002,040	)
A-Class		(1,221,515	)		(4,372,624	)
C-Class		(259,159	)		(630,920	)
H-Class		(12,460,265	)		(47,422,116	)
Net decrease from capital share transactions		(869,600	)		(6,912,169	)
Net decrease in net assets		(973,163	)		(6,431,353	)
Net assets:
Beginning of period		14,784,665			21,216,018
End of period	$	13,811,502		$	14,784,665
Capital share activity:
Shares sold
Investor Class		368,336			540,063
A-Class		27,908			33,355
C-Class		506			1,663
H-Class		208,693			724,014
Shares issued from reinvestment of distributions
Investor Class		—			8,323
A-Class		—			2,384
C-Class		—			1,456
H-Class		—			1,965
Shares redeemed
Investor Class		(399,776	)		(583,497	)
A-Class		(18,778	)		(68,076	)
C-Class		(4,521	)		(10,981	)
H-Class		(198,823	)		(738,591	)
Net decrease in shares		(16,455	)		(87,922	)

92 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	68.98		$	71.23		$	70.95		$	61.36		$	60.75		$	55.81
Income (loss) from investment operations:
Net investment income (loss)b		.01			.32			.36			.52			.22			.52
Net gain (loss) on investments (realized and unrealized)		1.23	d		2.18			4.48			9.38			.82			5.64
Total from investment operations		1.24			2.50			4.84			9.90			1.04			6.16
Less distributions from:
Net investment income		—			(.52	)		(1.64	)		(.31	)		(.32	)		(.12	)
Net realized gains		—			(4.23	)		(2.92	)		—			(.11	)		(1.10	)
Total distributions		—			(4.75	)		(4.56	)		(.31	)		(.43	)		(1.22	)
Net asset value, end of period	$	70.22		$	68.98		$	71.23		$	70.95		$	61.36		$	60.75
Total Return		1.80	%		4.06	%		6.71	%		16.20	%		1.72	%		11.15	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,743		$	11,739		$	14,625		$	14,413		$	15,173		$	48,494
Ratios to average net assets:
Net investment income (loss)		0.02	%		0.45	%		0.49	%		0.81	%		0.35	%		0.89	%
Total expenses		1.47	%		1.46	%		1.38	%		1.38	%		1.34	%		1.34	%
Portfolio turnover rate		217	%		323	%		442	%		352	%		339	%		343	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	63.17		$	65.82		$	66.03		$	57.27		$	56.88		$	52.46
Income (loss) from investment operations:
Net investment income (loss)b		.03			.11			.17			.23			.08			.38
Net gain (loss) on investments (realized and unrealized)		1.03	d		1.99			4.18			8.84			.74			5.26
Total from investment operations		1.06			2.10			4.35			9.07			.82			5.64
Less distributions from:
Net investment income		—			(.52	)		(1.64	)		(.31	)		(.32	)		(.12	)
Net realized gains		—			(4.23	)		(2.92	)		—			(.11	)		(1.10	)
Total distributions		—			(4.75	)		(4.56	)		(.31	)		(.43	)		(1.22	)
Net asset value, end of period	$	64.23		$	63.17		$	65.82		$	66.03		$	57.27		$	56.88
Total Returnc		1.68	%		3.79	%		6.46	%		15.91	%		1.45	%		10.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,798		$	1,192		$	3,371		$	2,180		$	7,990		$	10,703
Ratios to average net assets:
Net investment income (loss)		0.09	%		0.17	%		0.24	%		0.40	%		0.15	%		0.69	%
Total expenses		1.71	%		1.71	%		1.63	%		1.62	%		1.60	%		1.58	%
Portfolio turnover rate		217	%		323	%		442	%		352	%		339	%		343	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 93

LEISURE 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	55.82		$	59.16		$	60.23		$	52.65		$	52.72		$	49.07
Income (loss) from investment operations:
Net investment income (loss)b		(.24	)		(.32	)		(.36	)		(.18	)		(.28	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		.95	d		1.73			3.85			8.07			.64			5.06
Total from investment operations		.71			1.41			3.49			7.89			.36			4.87
Less distributions from:
Net investment income		—			(.52	)		(1.64	)		(.31	)		(.32	)		(.12	)
Net realized gains		—			(4.23	)		(2.92	)		—			(.11	)		(1.10	)
Total distributions		—			(4.75	)		(4.56	)		(.31	)		(.43	)		(1.22	)
Net asset value, end of period	$	56.53		$	55.82		$	59.16		$	60.23		$	52.65		$	52.72
Total Returnc		1.27	%		3.03	%		5.66	%		15.05	%		0.69	%		10.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	582		$	798		$	1,311		$	1,327		$	1,353		$	1,590
Ratios to average net assets:
Net investment income (loss)		(0.83	%)		(0.56	%)		(0.58	%)		(0.33	%)		(0.54	%)		(0.37	%)
Total expenses		2.46	%		2.46	%		2.38	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		217	%		323	%		442	%		352	%		339	%		343	%

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

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.

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	61.36		$	64.06		$	64.38		$	55.85		$	55.50		$	51.31
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.29	)		.07			.20			.27			.30
Net gain (loss) on investments (realized and unrealized)		1.03	d		2.34			4.17			8.64			.51			5.11
Total from investment operations		1.01			2.05			4.24			8.84			.78			5.41
Less distributions from:
Net investment income		—			(.52	)		(1.64	)		(.31	)		(.32	)		(.12	)
Net realized gains		—			(4.23	)		(2.92	)		—			(.11	)		(1.10	)
Total distributions		—			(4.75	)		(4.56	)		(.31	)		(.43	)		(1.22	)
Net asset value, end of period	$	62.37		$	61.36		$	64.06		$	64.38		$	55.85		$	55.50
Total Return		1.65	%		3.81	%		6.45	%		15.90	%		1.41	%		10.66	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,688		$	1,055		$	1,910		$	3,769		$	13,212		$	7,074
Ratios to average net assets:
Net investment income (loss)		(0.05	%)		(0.45	%)		0.10	%		0.34	%		0.49	%		0.55	%
Total expenses		1.72	%		1.69	%		1.63	%		1.63	%		1.64	%		1.83	%
Portfolio turnover rate		217	%		323	%		442	%		352	%		339	%		343	%

a	Unaudited figures for the period ended September 30, 2019. 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	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
e	Effective September 30, 2015, the Fund’s Advisor Class share were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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 Goldcorp Corp.	8.6%
Barrick Gold Corp.	8.2%
Franco-Nevada Corp.	6.4%
Freeport-McMoRan, Inc.	5.7%
Agnico Eagle Mines Ltd.	5.4%
Wheaton Precious Metals Corp.	5.3%
Kirkland Lake Gold Ltd.	4.6%
Royal Gold, Inc.	4.4%
AngloGold Ashanti Ltd. ADR	4.1%
VanEck Vectors Junior Gold Miners ETF	4.0%
Top Ten Total	56.7%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	16.41%	38.00%	1.77%	(4.94%)
A-Class Shares	16.27%	37.67%	1.49%	(5.19%)
A-Class Shares with sales charge‡	10.75%	31.16%	0.51%	(5.65%)
C-Class Shares	15.90%	36.67%	0.77%	(5.88%)
C-Class Shares with CDSC§	14.90%	35.67%	0.77%	(5.88%)
H-Class Shares**	16.38%	37.66%	1.43%	(5.33%)
S&P 500 Materials Index	6.18%	2.70%	5.37%	9.23%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Materials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
†	6 month returns are not annualized.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

96 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
PRECIOUS METALS FUND

	Shares		Value
COMMON STOCKS† - 95.7%
Mining - 95.7%
Newmont Goldcorp Corp.		136,161	$	5,163,225
Barrick Gold Corp.		286,067		4,957,541
Franco-Nevada Corp.		42,290		3,855,156
Freeport-McMoRan, Inc.		355,966		3,406,595
Agnico Eagle Mines Ltd.		60,947		3,267,369
Wheaton Precious Metals Corp.		121,221		3,180,839
Kirkland Lake Gold Ltd.		61,688		2,763,622
Royal Gold, Inc.		21,620		2,663,800
AngloGold Ashanti Ltd. ADR		136,642		2,496,449
Kinross Gold Corp.*		467,723		2,151,526
Gold Fields Ltd. ADR		381,393		1,876,454
Sibanye Gold Ltd. ADR*,1		342,526		1,849,640
Pan American Silver Corp.		106,534		1,670,453
B2Gold Corp.*		511,952		1,653,605
Yamana Gold, Inc.		499,885		1,589,634
Alamos Gold, Inc. — Class A		234,096		1,357,757
Pretium Resources, Inc.*,1		117,515		1,352,598
Novagold Resources, Inc.*		214,906		1,304,479
SSR Mining, Inc.*,1		86,282		1,252,815
First Majestic Silver Corp.*,1		133,788		1,216,133
IAMGOLD Corp.*		335,145		1,142,844
Eldorado Gold Corp.*		133,155		1,034,614
Osisko Gold Royalties Ltd.		103,449		962,076
Coeur Mining, Inc.*		195,426		939,999
Sandstorm Gold Ltd.*,1		165,469		933,245
MAG Silver Corp.*		84,301		894,434
Hecla Mining Co.		491,706		865,403
Seabridge Gold, Inc.*,1		63,669		806,049
Fortuna Silver Mines, Inc.*,1		204,432		631,695
Gold Resource Corp.		130,653		398,492
Total Mining				57,638,541
Total Common Stocks
(Cost $42,835,992)				57,638,541
RIGHTS††† - 0.0%
MINING - 0.0%
Pan American Silver Corp.*,2		219,148		—
Total Rights
(Cost $—)				—
EXCHANGE-TRADED FUNDS† - 3.9%
VanEck Vectors Junior Gold Miners ETF		65,941		2,391,021
Total Exchange-Traded Funds
(Cost $1,869,813)				2,391,021
	Face Amount
REPURCHASE AGREEMENTS††,3 - 0.0%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	2,931		2,931
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		942		942
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		848		848
Total Repurchase Agreements
(Cost $4,721)				4,721
	Shares
SECURITIES LENDING COLLATERAL†,4 - 7.6%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%5		4,575,399		4,575,399
Total Securities Lending Collateral
(Cost $4,575,399)				4,575,399
Total Investments - 107.2%
(Cost $49,285,925)			$	64,609,682
Other Assets & Liabilities, net - (7.2%)				(4,363,162	)
Total Net Assets - 100.0%			$	60,246,520

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Security was fair valued by the Valuation Committee at September 30, 2019. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
3	Repurchase Agreements — See Note 6.
4	Securities lending collateral — See Note 7.
5	Rate indicated is the 7-day yield as of September 30, 2019.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
PRECIOUS METALS FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	57,638,541	$	—	$	—		$	57,638,541
Rights		—		—		—	*		—
Exchange-Traded Funds		2,391,021		—		—			2,391,021
Repurchase Agreements		—		4,721		—			4,721
Securities Lending Collateral		4,575,399		—		—			4,575,399
Total Assets	$	64,604,961	$	4,721	$	—		$	64,609,682

^* Security has a market value of $0.

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

PRECIOUS METALS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $4,261,000 of securities loaned (cost $49,281,204)	$	64,604,961
Repurchase agreements, at value (cost $4,721)		4,721
Cash		1,988
Receivables:
Securities sold		1,812,928
Fund shares sold		677,828
Dividends		10,391
Foreign tax reclaims		4,448
Securities lending income		1,203
Total assets		67,118,468
Liabilities:
Payable for:
Return of securities lending collateral		4,575,399
Fund shares redeemed		1,882,774
Deferred foreign capital gain taxes		276,532
Management fees		40,967
Transfer agent and administrative fees		13,656
Distribution and service fees		6,003
Portfolio accounting fees		5,462
Trustees’ fees*		1,336
Miscellaneous		69,819
Total liabilities		6,871,948
Commitments and contingent liabilities (Note 9)		—
Net assets	$	60,246,520
Net assets consist of:
Paid in capital	$	101,331,143
Total distributable earnings (loss)		(41,084,623	)
Net assets	$	60,246,520
Investor Class:
Net assets	$	39,108,398
Capital shares outstanding		1,285,028
Net asset value per share	$	30.43
A-Class:
Net assets	$	15,627,770
Capital shares outstanding		540,061
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	$	2,391,565
Capital shares outstanding		97,396
Net asset value per share	$	24.56
H-Class:
Net assets	$	3,118,787
Capital shares outstanding		111,398
Net asset value per share	$	28.00

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $26,637)	$	392,881
Interest		8,495
Income from securities lending, net		6,427
Total investment income		407,803
Expenses:
Management fees		274,171
Distribution and service fees:		—
A-Class		19,473
C-Class		11,953
H-Class		4,939
Transfer agent and administrative fees		91,390
Portfolio accounting fees		36,556
Trustees’ fees*		7,562
Custodian fees		5,141
Line of credit fees		13
Miscellaneous		83,110
Total expenses		534,308
Net investment loss		(126,505	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,245,512
Net realized gain		5,245,512
Net change in unrealized appreciation (depreciation) on:
Investments		4,824,016
Net change in unrealized appreciation (depreciation)		4,824,016
Net realized and unrealized gain		10,069,528
Net increase in net assets resulting from operations	$	9,943,023

^* 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

PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(126,505	)	$	(315,529	)
Net realized gain (loss) on investments		5,245,512			(11,808,144	)
Net change in unrealized appreciation (depreciation) on investments		4,824,016			7,296,954
Net increase (decrease) in net assets resulting from operations		9,943,023			(4,826,719	)
Distributions to shareholders:
Investor Class		—			(375,623	)
A-Class		—			(174,388	)
C-Class		—			(41,752	)
H-Class		—			(26,797	)
Total distributions to shareholders		—			(618,560	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		160,814,706			241,203,549
A-Class		2,983,517			7,901,916
C-Class		1,149,698			2,271,183
H-Class		20,958,830			139,186,676
Distributions reinvested
Investor Class		—			361,878
A-Class		—			171,857
C-Class		—			41,057
H-Class		—			25,498
Cost of shares redeemed
Investor Class		(162,067,847	)		(239,242,751	)
A-Class		(4,122,670	)		(5,992,947	)
C-Class		(1,494,733	)		(6,279,462	)
H-Class		(20,906,328	)		(136,898,554	)
Net increase (decrease) from capital share transactions		(2,684,827	)		2,749,900
Net increase (decrease) in net assets		7,258,196			(2,695,379	)
Net assets:
Beginning of period		52,988,324			55,683,703
End of period	$	60,246,520		$	52,988,324
Capital share activity:
Shares sold
Investor Class		5,661,498			9,657,928
A-Class		116,715			322,537
C-Class		50,214			112,787
H-Class		839,181			6,003,655
Shares issued from reinvestment of distributions
Investor Class		—			15,591
A-Class		—			7,773
C-Class		—			2,176
H-Class		—			1,193
Shares redeemed
Investor Class		(5,666,649	)		(9,638,186	)
A-Class		(148,138	)		(253,204	)
C-Class		(66,631	)		(302,237	)
H-Class		(837,073	)		(5,985,054	)
Net decrease in shares		(50,883	)		(55,041	)

100 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	26.14		$	27.07		$	30.82		$	27.37		$	25.11		$	35.78
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.12	)		(.17	)		(.23	)		(.07	)		.01
Net gain (loss) on investments (realized and unrealized)		4.32			(.48	)		(1.96	)		4.85			2.44			(9.88	)
Total from investment operations		4.29			(.60	)		(2.13	)		4.62			2.37			(9.87	)
Less distributions from:
Net investment income		—			(.33	)		(1.62	)		(1.17	)		(.11	)		(.80	)
Total distributions		—			(.33	)		(1.62	)		(1.17	)		(.11	)		(.80	)
Net asset value, end of period	$	30.43		$	26.14		$	27.07		$	30.82		$	27.37		$	25.11
Total Return		16.41	%		(2.08	%)		(6.98	%)		16.91	%		9.67	%		(27.88	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	39,108		$	33,724		$	33,968		$	43,530		$	49,321		$	30,528
Ratios to average net assets:
Net investment income (loss)		(0.22	%)		(0.47	%)		(0.57	%)		(0.67	%)		(0.31	%)		0.04	%
Total expensesc		1.36	%		1.39	%		1.28	%		1.27	%		1.25	%		1.25	%
Portfolio turnover rate		161	%		571	%		630	%		508	%		797	%		371	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	24.89		$	25.85		$	29.59		$	26.39		$	24.28		$	34.75
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.17	)		(.22	)		(.27	)		(.12	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		4.12			(.46	)		(1.90	)		4.64			2.34			(9.57	)
Total from investment operations		4.05			(.63	)		(2.12	)		4.37			2.22			(9.67	)
Less distributions from:
Net investment income		—			(.33	)		(1.62	)		(1.17	)		(.11	)		(.80	)
Total distributions		—			(.33	)		(1.62	)		(1.17	)		(.11	)		(.80	)
Net asset value, end of period	$	28.94		$	24.89		$	25.85		$	29.59		$	26.39		$	24.28
Total Returnd		16.27	%		(2.30	%)		(7.24	%)		16.59	%		9.38	%		(28.13	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,628		$	14,222		$	12,781		$	12,085		$	3,711		$	4,928
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		(0.73	%)		(0.79	%)		(0.82	%)		(0.54	%)		(0.29	%)
Total expensesc		1.61	%		1.64	%		1.53	%		1.52	%		1.50	%		1.50	%
Portfolio turnover rate		161	%		571	%		630	%		508	%		797	%		371	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	21.19		$	22.24		$	25.89		$	23.38		$	21.67		$	31.34
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.32	)		(.39	)		(.46	)		(.26	)		(.29	)
Net gain (loss) on investments (realized and unrealized)		3.51			(.40	)		(1.64	)		4.14			2.08			(8.58	)
Total from investment operations		3.37			(.72	)		(2.03	)		3.68			1.82			(8.87	)
Less distributions from:
Net investment income		—			(.33	)		(1.62	)		(1.17	)		(.11	)		(.80	)
Total distributions		—			(.33	)		(1.62	)		(1.17	)		(.11	)		(.80	)
Net asset value, end of period	$	24.56		$	21.19		$	22.24		$	25.89		$	23.38		$	21.67
Total Returnd		15.90	%		(3.08	%)		(7.95	%)		15.76	%		8.66	%		(28.64	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,392		$	2,412		$	6,697		$	7,607		$	6,825		$	5,590
Ratios to average net assets:
Net investment income (loss)		(1.24	%)		(1.53	%)		(1.56	%)		(1.59	%)		(1.34	%)		(0.99	%)
Total expensesc		2.36	%		2.37	%		2.28	%		2.27	%		2.25	%		2.25	%
Portfolio turnover rate		161	%		571	%		630	%		508	%		797	%		371	%

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	24.06		$	25.02		$	28.73		$	25.64		$	23.64		$	33.92
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.18	)		(.25	)		(.31	)		(.11	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		4.04			(.45	)		(1.84	)		4.57			2.22			(9.34	)
Total from investment operations		3.94			(.63	)		(2.09	)		4.26			2.11			(9.48	)
Less distributions from:
Net investment income		—			(.33	)		(1.62	)		(1.17	)		(.11	)		(.80	)
Total distributions		—			(.33	)		(1.62	)		(1.17	)		(.11	)		(.80	)
Net asset value, end of period	$	28.00		$	24.06		$	25.02		$	28.73		$	25.64		$	23.64
Total Return		16.38	%		(2.33	%)		(7.36	%)		16.65	%		9.17	%		(28.24	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,119		$	2,630		$	2,239		$	2,954		$	2,556		$	8,400
Ratios to average net assets:
Net investment income (loss)		(0.73	%)		(0.78	%)		(0.92	%)		(0.94	%)		(0.53	%)		(0.45	%)
Total expensesc		1.61	%		1.63	%		1.53	%		1.52	%		1.59	%		1.75	%
Portfolio turnover rate		161	%		571	%		630	%		508	%		797	%		371	%

a	Unaudited figures for the period ended September 30, 2019. 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	Does not include expenses of the underlying funds in which the Fund invests.
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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
American Tower Corp. — Class A	2.9%
Crown Castle International Corp.	2.2%
Prologis, Inc.	2.2%
Equinix, Inc.	2.1%
Simon Property Group, Inc.	2.1%
Public Storage	1.9%
Welltower, Inc.	1.8%
Equity Residential	1.7%
AvalonBay Communities, Inc.	1.7%
Digital Realty Trust, Inc.	1.6%
Top Ten Total	20.2%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	6.13%	12.93%	7.23%	9.83%
A-Class Shares with sales charge‡	1.09%	7.55%	6.18%	9.29%
C-Class Shares	5.73%	12.10%	6.42%	8.97%
C-Class Shares with CDSC§	4.73%	11.10%	6.42%	8.97%
H-Class Shares	6.15%	12.99%	7.23%	9.81%
MSCI U.S. REIT Index	9.08%	18.31%	10.11%	13.00%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 103

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
REAL ESTATE FUND

	Shares		Value
COMMON STOCKS† - 100.1%
REITs - 96.6%
REITs-Diversified - 22.9%
American Tower Corp. — Class A		3,612	$	798,722
Crown Castle International Corp.		4,458		619,707
Equinix, Inc.		998		575,646
Digital Realty Trust, Inc.		3,498		454,075
SBA Communications Corp.		1,758		423,942
Weyerhaeuser Co.		13,533		374,864
WP Carey, Inc.		3,612		323,274
Vornado Realty Trust		4,619		294,092
Duke Realty Corp.		8,617		292,719
VICI Properties, Inc.		11,674		264,416
Lamar Advertising Co. — Class A		2,937		240,628
Gaming and Leisure Properties, Inc.		6,110		233,646
New Residential Investment Corp.		13,725		215,208
CoreSite Realty Corp.		1,683		205,074
EPR Properties		2,625		201,757
Outfront Media, Inc.		5,962		165,624
Rayonier, Inc.		5,606		158,089
PotlatchDeltic Corp.		3,335		137,018
GEO Group, Inc.		6,915		119,906
CoreCivic, Inc.		6,918		119,543
Uniti Group, Inc.		13,046		101,302
Total REITs-Diversified				6,319,252
REITs-Apartments - 11.6%
Equity Residential		5,458		470,807
AvalonBay Communities, Inc.		2,140		460,806
Essex Property Trust, Inc.		1,175		383,814
Invitation Homes, Inc.		11,157		330,359
Mid-America Apartment Communities, Inc.		2,451		318,654
UDR, Inc.		6,474		313,860
Camden Property Trust		2,459		272,974
Apartment Investment & Management Co. — Class A		4,467		232,909
American Homes 4 Rent — Class A		8,981		232,518
American Campus Communities, Inc.		4,484		215,591
Total REITs-Apartments				3,232,292
REITs-Office Property - 11.3%
Boston Properties, Inc.		2,890		374,717
Alexandria Real Estate Equities, Inc.		2,243		345,512
Kilroy Realty Corp.		2,982		232,268
Douglas Emmett, Inc.		5,378		230,340
SL Green Realty Corp.		2,654		216,964
Cousins Properties, Inc.		5,173		194,453
JBG SMITH Properties		4,836		189,620
Hudson Pacific Properties, Inc.		5,630		188,380
Highwoods Properties, Inc.		3,973		178,547
Equity Commonwealth		5,006		171,455
Corporate Office Properties Trust		5,152		153,427
Paramount Group, Inc.		11,105		148,252
Brandywine Realty Trust		8,973		135,941
Piedmont Office Realty Trust, Inc. — Class A		6,487		135,449
Empire State Realty Trust, Inc. — Class A		9,437		134,666
Columbia Property Trust, Inc.		6,193		130,982
Total REITs-Office Property				3,160,973
REITs-Health Care - 9.6%
Welltower, Inc.		5,511		499,572
Ventas, Inc.		5,870		428,686
HCP, Inc.		9,683		345,005
Omega Healthcare Investors, Inc.		6,147		256,883
Medical Properties Trust, Inc.		12,664		247,708
Healthcare Trust of America, Inc. — Class A		6,948		204,132
Sabra Health Care REIT, Inc.		7,602		174,542
Healthcare Realty Trust, Inc.		5,135		172,022
Physicians Realty Trust		8,556		151,869
Senior Housing Properties Trust		13,811		127,821
CareTrust REIT, Inc.		5,293		124,412
Total REITs-Health Care				2,732,652
REITs-Warehouse/Industries - 7.9%
Prologis, Inc.		7,157		609,920
CyrusOne, Inc.		3,190		252,329
Liberty Property Trust		4,622		237,247
Americold Realty Trust		5,999		222,383
First Industrial Realty Trust, Inc.		4,702		186,011
Rexford Industrial Realty, Inc.		4,142		182,331
EastGroup Properties, Inc.		1,428		178,529
STAG Industrial, Inc.		5,458		160,902
QTS Realty Trust, Inc. — Class A		2,804		144,154
Total REITs-Warehouse/Industries				2,173,806
REITs-Shopping Centers - 6.6%
Regency Centers Corp.		4,122		286,438
Federal Realty Investment Trust		1,948		265,201
Kimco Realty Corp.		11,931		249,119
Brixmor Property Group, Inc.		10,106		205,051
Weingarten Realty Investors		5,531		161,118
SITE Centers Corp.		9,137		138,060
Retail Properties of America, Inc. — Class A		11,074		136,432
Urban Edge Properties		6,557		129,763
Acadia Realty Trust		4,472		127,810
Retail Opportunity Investments Corp.		6,488		118,276
Total REITs-Shopping Centers				1,817,268
REITs-Hotels - 6.1%
Host Hotels & Resorts, Inc.		17,098		295,624
MGM Growth Properties LLC — Class A		7,968		239,438
Park Hotels & Resorts, Inc.		7,375		184,154
Service Properties Trust		6,799		175,346
Ryman Hospitality Properties, Inc.		2,090		170,983
Apple Hospitality REIT, Inc.		9,680		160,494
Pebblebrook Hotel Trust		5,745		159,826
Sunstone Hotel Investors, Inc.		10,593		145,548
RLJ Lodging Trust		8,328		141,493
Total REITs-Hotels				1,672,906

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
REAL ESTATE FUND

	Shares		Value
REITs-Storage - 5.5%
Public Storage		2,181	$	534,934
Extra Space Storage, Inc.		2,757		322,073
Iron Mountain, Inc.		7,860		254,585
CubeSmart		6,059		211,459
Life Storage, Inc.		1,741		183,519
Total REITs-Storage				1,506,570
REITs-Mortgage - 5.1%
Annaly Capital Management, Inc.		33,374		293,691
AGNC Investment Corp.		15,151		243,780
Starwood Property Trust, Inc.		8,848		214,299
Blackstone Mortgage Trust, Inc. — Class A		5,036		180,541
Chimera Investment Corp.		7,970		155,893
Two Harbors Investment Corp.		11,763		154,448
Apollo Commercial Real Estate Finance, Inc.		7,286		139,673
Total REITs-Mortgage				1,382,325
REITs-Regional Malls - 4.0%
Simon Property Group, Inc.		3,696		575,282
Macerich Co.1		5,550		175,324
Taubman Centers, Inc.		3,216		131,309
Brookfield Property REIT, Inc. — Class A		5,076		103,500
Tanger Factory Outlet Centers, Inc.1		6,440		99,691
Total REITs-Regional Malls				1,085,106
REITs-Single Tenant - 3.9%
Realty Income Corp.		5,317		407,708
National Retail Properties, Inc.		4,575		258,030
STORE Capital Corp.		6,489		242,753
Spirit Realty Capital, Inc.		3,611		172,822
Total REITs-Single Tenant				1,081,313
REITs-Manufactured Homes - 2.1%
Sun Communities, Inc.		2,054		304,916
Equity LifeStyle Properties, Inc.		2,173		290,313
Total REITs-Manufactured Homes				595,229
Total REITs				26,759,692
Real Estate - 3.5%
Real Estate Management/Services - 2.8%
CBRE Group, Inc. — Class A*		6,601		349,919
Jones Lang LaSalle, Inc.		1,630		226,668
Redfin Corp.*,1		6,442		108,483
Realogy Holdings Corp.1		11,600		77,488
Total Real Estate Management/Services				762,558
Real Estate Operations/Development - 0.7%
Howard Hughes Corp.*		1,497		194,011
Total Real Estate				956,569
Total Common Stocks
(Cost $25,714,430)				27,716,261
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	88,181		88,181
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		28,356		28,356
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		25,521		25,521
Total Repurchase Agreements
(Cost $142,058)				142,058
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		282,724		282,724
Total Securities Lending Collateral
(Cost $282,724)				282,724
Total Investments - 101.6%
(Cost $26,139,212)			$	28,141,043
Other Assets & Liabilities, net - (1.6%)				(444,107	)
Total Net Assets - 100.0%			$	27,696,936

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
REAL ESTATE FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	27,716,261	$	—	$	—	$	27,716,261
Repurchase Agreements		—		142,058		—		142,058
Securities Lending Collateral		282,724		—		—		282,724
Total Assets	$	27,998,985	$	142,058	$	—	$	28,141,043

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

REAL ESTATE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $270,307 of securities loaned (cost $25,997,154)	$	27,998,985
Repurchase agreements, at value (cost $142,058)		142,058
Receivables:
Fund shares sold		4,120,346
Dividends		110,772
Securities lending income		31
Interest		9
Total assets		32,372,201
Liabilities:
Payable for:
Securities purchased		4,037,753
Fund shares redeemed		297,724
Return of securities lending collateral		282,724
Management fees		16,048
Distribution and service fees		5,322
Transfer agent and administrative fees		4,720
Portfolio accounting fees		1,888
Trustees’ fees*		549
Miscellaneous		28,537
Total liabilities		4,675,265
Commitments and contingent liabilities (Note 9)		—
Net assets	$	27,696,936
Net assets consist of:
Paid in capital	$	31,589,503
Total distributable earnings (loss)		(3,892,567	)
Net assets	$	27,696,936
A-Class:
Net assets	$	876,793
Capital shares outstanding		20,030
Net asset value per share	$	43.77
Maximum offering price per share (Net asset value divided by 95.25%)	$	45.95
C-Class:
Net assets	$	1,155,795
Capital shares outstanding		30,415
Net asset value per share	$	38.00
H-Class:
Net assets	$	25,664,348
Capital shares outstanding		587,642
Net asset value per share	$	43.67

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	571,111
Interest		2,031
Income from securities lending, net		442
Total investment income		573,584
Expenses:
Management fees		140,888
Distribution and service fees:
A-Class		1,040
C-Class		4,717
H-Class		39,219
Transfer agent and administrative fees		41,437
Portfolio accounting fees		16,575
Trustees’ fees*		3,643
Custodian fees		2,286
Line of credit fees		134
Miscellaneous		36,997
Total expenses		286,936
Net investment income		286,648
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,779,588
Net realized gain		1,779,588
Net change in unrealized appreciation (depreciation) on:
Investments		(521,034	)
Net change in unrealized appreciation (depreciation)		(521,034	)
Net realized and unrealized gain		1,258,554
Net increase in net assets resulting from operations	$	1,545,202

^* 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 | 107

REAL ESTATE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	286,648		$	520,024
Net realized gain (loss) on investments		1,779,588			(5,228,397	)
Net change in unrealized appreciation (depreciation) on investments		(521,034	)		2,127,300
Net increase (decrease) in net assets resulting from operations		1,545,202			(2,581,073	)
Distributions to shareholders:
A-Class		—			(33,828	)
C-Class		—			(4,978	)
H-Class		—			(297,344	)
Total distributions to shareholders		—			(336,150	)
Capital share transactions:
Proceeds from sale of shares
A-Class		652,114			13,139,494
C-Class		2,084,049			1,944,282
H-Class		111,558,636			295,819,345
Distributions reinvested
A-Class		—			33,696
C-Class		—			4,913
H-Class		—			296,798
Cost of shares redeemed
A-Class		(482,250	)		(12,570,391	)
C-Class		(1,681,093	)		(2,346,594	)
H-Class		(105,775,265	)		(283,887,233	)
Net increase from capital share transactions		6,356,191			12,434,310
Net increase in net assets		7,901,393			9,517,087
Net assets:
Beginning of period		19,795,543			10,278,456
End of period	$	27,696,936		$	19,795,543
Capital share activity:
Shares sold
A-Class		15,614			335,956
C-Class		57,089			57,543
H-Class		2,679,805			7,753,438
Shares issued from reinvestment of distributions
A-Class		—			888
C-Class		—			148
H-Class		—			7,837
Shares redeemed
A-Class		(11,533	)		(334,426	)
C-Class		(46,195	)		(69,615	)
H-Class		(2,540,281	)		(7,558,789	)
Net increase in shares		154,499			192,980

108 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	41.24		$	35.92		$	37.55		$	37.31		$	38.34		$	33.47
Income (loss) from investment operations:
Net investment income (loss)b		.31			.46			.65			.34			.65			.42
Net gain (loss) on investments (realized and unrealized)		2.22			5.12	d		(2.08	)		2.15			(1.24	)		4.77
Total from investment operations		2.53			5.58			(1.43	)		2.49			(.59	)		5.19
Less distributions from:
Net investment income		—			(.26	)		(.20	)		(2.25	)		(.44	)		(.32	)
Total distributions		—			(.26	)		(.20	)		(2.25	)		(.44	)		(.32	)
Net asset value, end of period	$	43.77		$	41.24		$	35.92		$	37.55		$	37.31		$	38.34
Total Returnc		6.13	%		15.58	%		(3.85	%)		7.17	%		(1.46	%)		15.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	877		$	658		$	486		$	1,762		$	9,223		$	6,329
Ratios to average net assets:
Net investment income (loss)		1.48	%		1.18	%		1.69	%		0.89	%		1.82	%		1.13	%
Total expenses		1.71	%		1.72	%		1.63	%		1.63	%		1.62	%		1.60	%
Portfolio turnover rate		288	%		877	%		1,010	%		1,060	%		880	%		599	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	35.94		$	31.57		$	33.28		$	33.56		$	34.81		$	30.64
Income (loss) from investment operations:
Net investment income (loss)b		.17			.31			.29			.19			.22			.23
Net gain (loss) on investments (realized and unrealized)		1.89			4.32	d		(1.80	)		1.78			(1.03	)		4.26
Total from investment operations		2.06			4.63			(1.51	)		1.97			(.81	)		4.49
Less distributions from:
Net investment income		—			(.26	)		(.20	)		(2.25	)		(.44	)		(.32	)
Total distributions		—			(.26	)		(.20	)		(2.25	)		(.44	)		(.32	)
Net asset value, end of period	$	38.00		$	35.94		$	31.57		$	33.28		$	33.56		$	34.81
Total Returnc		5.73	%		14.72	%		(4.56	%)		6.37	%		(2.25	%)		14.73	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,156		$	702		$	993		$	999		$	1,947		$	2,937
Ratios to average net assets:
Net investment income (loss)		0.95	%		0.94	%		0.86	%		0.56	%		0.69	%		0.70	%
Total expenses		2.46	%		2.46	%		2.38	%		2.38	%		2.36	%		2.35	%
Portfolio turnover rate		288	%		877	%		1,010	%		1,060	%		880	%		599	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	41.14		$	35.82		$	37.45		$	37.21		$	38.25		$	33.40
Income (loss) from investment operations:
Net investment income (loss)b		.37			0.65			.92			.27			.71			.48
Net gain (loss) on investments (realized and unrealized)		2.16			4.93	d		(2.35	)		2.22			(1.31	)		4.69
Total from investment operations		2.53			5.58			(1.43	)		2.49			(.60	)		5.17
Less distributions from:
Net investment income		—			(.26	)		(.20	)		(2.25	)		(.44	)		(.32	)
Total distributions		—			(.26	)		(.20	)		(2.25	)		(.44	)		(.32	)
Net asset value, end of period	$	43.67		$	41.14		$	35.82		$	37.45		$	37.21		$	38.25
Total Return		6.15	%		15.63	%		(3.86	%)		7.18	%		(1.49	%)		15.55	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	25,664		$	18,436		$	8,800		$	6,322		$	34,504		$	37,625
Ratios to average net assets:
Net investment income (loss)		1.76	%		1.69	%		2.43	%		0.70	%		1.97	%		1.32	%
Total expenses		1.71	%		1.71	%		1.63	%		1.62	%		1.62	%		1.60	%
Portfolio turnover rate		288	%		877	%		1,010	%		1,060	%		880	%		599	%

a	Unaudited figures for the period ended September 30, 2019. 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	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.	10.1%
Walmart, Inc.	6.5%
Home Depot, Inc.	5.7%
Costco Wholesale Corp.	4.0%
Alibaba Group Holding Ltd. ADR	3.7%
Lowe’s Companies, Inc.	3.2%
Booking Holdings, Inc.	3.2%
TJX Companies, Inc.	2.9%
Target Corp.	2.6%
Walgreens Boots Alliance, Inc.	2.5%
Top Ten Total	44.4%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	1.70%	(1.85%)	7.50%	12.08%
A-Class Shares	1.58%	(2.07%)	7.25%	11.84%
A-Class Shares with sales charge‡	(3.25%)	(6.73%)	6.22%	11.30%
C-Class Shares	1.18%	(2.85%)	6.42%	10.99%
C-Class Shares with CDSC§	0.18%	(3.82%)	6.42%	10.99%
H-Class Shares**	1.59%	(2.06%)	7.21%	11.70%
S&P 500 Consumer Discretionary Index	5.82%	2.36%	14.03%	17.68%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 111

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
RETAILING FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Retail - 66.5%
Walmart, Inc.		5,910	$	701,399
Home Depot, Inc.		2,657		616,477
Costco Wholesale Corp.		1,508		434,470
Lowe’s Companies, Inc.		3,191		350,882
TJX Companies, Inc.		5,551		309,413
Target Corp.		2,627		280,853
Walgreens Boots Alliance, Inc.		4,959		274,282
Dollar General Corp.		1,532		243,496
Ross Stores, Inc.		2,196		241,231
O’Reilly Automotive, Inc.*		530		211,210
Dollar Tree, Inc.*		1,741		198,753
AutoZone, Inc.*		174		188,724
Carvana Co.*,1		2,710		178,860
Best Buy Company, Inc.		2,415		166,611
Ulta Beauty, Inc.*		607		152,145
Genuine Parts Co.		1,485		147,891
CarMax, Inc.*		1,663		146,344
Burlington Stores, Inc.*		701		140,074
Advance Auto Parts, Inc.		836		138,274
Tiffany & Co.		1,426		132,090
Tractor Supply Co.		1,401		126,706
Kohl’s Corp.		2,267		112,579
Five Below, Inc.*		808		101,889
Gap, Inc.		5,775		100,254
Nordstrom, Inc.		2,782		93,670
Williams-Sonoma, Inc.		1,351		91,841
L Brands, Inc.		4,668		91,446
Floor & Decor Holdings, Inc. — Class A*		1,739		88,950
Macy’s, Inc.		5,591		86,884
Foot Locker, Inc.		1,949		84,119
Qurate Retail, Inc. — Class A*		7,890		81,385
AutoNation, Inc.*		1,597		80,968
Dick’s Sporting Goods, Inc.		1,911		77,988
Ollie’s Bargain Outlet Holdings, Inc.*		1,250		73,300
BJ’s Wholesale Club Holdings, Inc.*		2,803		72,514
Urban Outfitters, Inc.*		2,543		71,433
RH*		399		68,161
American Eagle Outfitters, Inc.		3,899		63,242
Dillard’s, Inc. — Class A1		808		53,417
Sally Beauty Holdings, Inc.*		3,489		51,951
Michaels Companies, Inc.*,1		5,038		49,322
Bed Bath & Beyond, Inc.1		4,504		47,923
Designer Brands, Inc. — Class A		2,500		42,800
Children’s Place, Inc.		540		41,575
Big Lots, Inc.		1,551		37,999
Abercrombie & Fitch Co. — Class A		2,399		37,424
At Home Group, Inc.*		3,197		30,755
Total Retail				7,213,974
Internet - 30.3%
Amazon.com, Inc.*		630		1,093,623
Alibaba Group Holding Ltd. ADR*		2,424		405,366
Booking Holdings, Inc.*		175		343,457
eBay, Inc.		5,499		214,351
JD.com, Inc. ADR*		6,299		177,695
Expedia Group, Inc.		1,270		170,701
MercadoLibre, Inc.*		269		148,281
Ctrip.com International Ltd. ADR*		4,260		124,775
Wayfair, Inc. — Class A*		1,067		119,632
Pinduoduo, Inc. ADR*		3,504		112,899
Etsy, Inc.*		1,729		97,688
Baozun, Inc. ADR*,1		2,162		92,317
GrubHub, Inc.*		1,566		88,025
Stitch Fix, Inc. — Class A*,1		2,872		55,286
Stamps.com, Inc.*		622		46,308
Total Internet				3,290,404
Distribution & Wholesale - 2.1%
LKQ Corp.*		3,745		117,780
Pool Corp.		544		109,725
Total Distribution & Wholesale				227,505
Commercial Services - 0.6%
Monro, Inc.		819		64,709
Total Common Stocks
(Cost $9,699,430)				10,796,592
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	52,491		52,491
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		16,879		16,879
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		15,191		15,191
Total Repurchase Agreements
(Cost $84,561)				84,561
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		236,449		236,449
Total Securities Lending Collateral
(Cost $236,449)				236,449
Total Investments - 102.5%
(Cost $10,020,440)			$	11,117,602
Other Assets & Liabilities, net - (2.5%)				(269,830	)
Total Net Assets - 100.0%			$	10,847,772

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
RETAILING FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	10,796,592	$	—	$	—	$	10,796,592
Repurchase Agreements		—		84,561		—		84,561
Securities Lending Collateral		236,449		—		—		236,449
Total Assets	$	11,033,041	$	84,561	$	—	$	11,117,602

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

RETAILING FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $239,280 of securities loaned (cost $9,935,879)	$	11,033,041
Repurchase agreements, at value (cost $84,561)		84,561
Receivables:
Securities sold		1,062,479
Fund shares sold		8,709
Dividends		7,196
Securities lending income		1,286
Interest		5
Total assets		12,197,277
Liabilities:
Payable for:
Fund shares redeemed		1,083,856
Return of securities lending collateral		236,449
Management fees		7,810
Transfer agent and administrative fees		2,297
Portfolio accounting fees		919
Distribution and service fees		743
Trustees’ fees*		330
Miscellaneous		17,101
Total liabilities		1,349,505
Commitments and contingent liabilities (Note 9)		—
Net assets	$	10,847,772
Net assets consist of:
Paid in capital	$	7,228,243
Total distributable earnings (loss)		3,619,529
Net assets	$	10,847,772
Investor Class:
Net assets	$	7,956,470
Capital shares outstanding		233,833
Net asset value per share	$	34.03
A-Class:
Net assets	$	1,670,619
Capital shares outstanding		51,982
Net asset value per share	$	32.14
Maximum offering price per share (Net asset value divided by 95.25%)	$	33.74
C-Class:
Net assets	$	384,923
Capital shares outstanding		13,613
Net asset value per share	$	28.28
H-Class:
Net assets	$	835,760
Capital shares outstanding		26,651
Net asset value per share	$	31.36

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $457)	$	102,173
Interest		1,287
Income from securities lending, net		9,043
Total investment income		112,503
Expenses:
Management fees		75,916
Distribution and service fees:
A-Class		2,580
C-Class		2,074
H-Class		2,443
Transfer agent and administrative fees		22,328
Registration fees		9,821
Portfolio accounting fees		8,931
Trustees’ fees*		2,833
Custodian fees		1,288
Line of credit fees		86
Miscellaneous		9,505
Total expenses		137,805
Net investment loss		(25,302	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,956,577
Net realized gain		5,956,577
Net change in unrealized appreciation (depreciation) on:
Investments		(5,341,161	)
Net change in unrealized appreciation (depreciation)		(5,341,161	)
Net realized and unrealized gain		615,416
Net increase in net assets resulting from operations	$	590,114

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

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

RETAILING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(25,302	)	$	(83,642	)
Net realized gain on investments		5,956,577			488,545
Net change in unrealized appreciation (depreciation) on investments		(5,341,161	)		2,257,492
Net increase in net assets resulting from operations		590,114			2,662,395
Distributions to shareholders:
Investor Class		—			(62,096	)
A-Class		—			(2,423	)
C-Class		—			(1,147	)
H-Class		—			(6,646	)
Total distributions to shareholders		—			(72,312	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		18,753,051			109,264,472
A-Class		3,662,192			10,313,921
C-Class		491,237			2,192,820
H-Class		2,257,774			71,311,377
Distributions reinvested
Investor Class		—			61,699
A-Class		—			2,355
C-Class		—			1,137
H-Class		—			6,629
Cost of shares redeemed
Investor Class		(33,925,975	)		(108,396,873	)
A-Class		(7,985,283	)		(6,184,722	)
C-Class		(577,029	)		(2,382,440	)
H-Class		(7,705,374	)		(70,311,011	)
Net increase (decrease) from capital share transactions		(25,029,407	)		5,879,364
Net increase (decrease) in net assets		(24,439,293	)		8,469,447
Net assets:
Beginning of period		35,287,065			26,817,618
End of period	$	10,847,772		$	35,287,065
Capital share activity:
Shares sold
Investor Class		569,124			3,410,858
A-Class		119,399			333,772
C-Class		17,547			82,019
H-Class		72,200			2,409,627
Shares issued from reinvestment of distributions
Investor Class		—			2,028
A-Class		—			82
C-Class		—			45
H-Class		—			236
Shares redeemed
Investor Class		(1,015,062	)		(3,391,851	)
A-Class		(250,939	)		(194,378	)
C-Class		(20,669	)		(89,015	)
H-Class		(248,468	)		(2,388,929	)
Net increase (decrease) in shares		(756,868	)		174,494

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	33.46		$	30.17		$	26.78		$	26.98		$	28.13		$	23.54
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.02	)		.11			.03			(.03	)		.11
Net gain (loss) on investments (realized and unrealized)		.60			3.35			3.28			(.23	)		(1.10	)		4.48
Total from investment operations		.57			3.33			3.39			(.20	)		(1.13	)		4.59
Less distributions from:
Net investment income		—			(.03	)		—			—			(.02	)		—
Net realized gains		—			(.01	)		—			—			—			—
Total distributions		—			(.04	)		—			—			(.02	)		—
Net asset value, end of period	$	34.03		$	33.46		$	30.17		$	26.78		$	26.98		$	28.13
Total Return		1.70	%		11.06	%		12.66	%		(0.74	%)		(4.01	%)		19.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,956		$	22,748		$	19,876		$	8,498		$	10,265		$	46,283
Ratios to average net assets:
Net investment income (loss)		(0.19	%)		(0.07	%)		0.40	%		0.10	%		(0.10	%)		0.42	%
Total expenses		1.46	%		1.45	%		1.37	%		1.37	%		1.34	%		1.33	%
Portfolio turnover rate		110	%		314	%		1,306	%		887	%		238	%		395	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	31.64		$	28.60		$	25.44		$	25.69		$	26.85		$	22.48
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.05	)		—	c		(.08	)		(.09	)		.06
Net gain (loss) on investments (realized and unrealized)		.56			3.13			3.16			(.17	)		(1.05	)		4.31
Total from investment operations		.50			3.08			3.16			(.25	)		(1.14	)		4.37
Less distributions from:
Net investment income		—			(.03	)		—			—			(.02	)		—
Net realized gains		—			(.01	)		—			—			—			—
Total distributions		—			(.04	)		—			—			(.02	)		—
Net asset value, end of period	$	32.14		$	31.64		$	28.60		$	25.44		$	25.69		$	26.85
Total Returnd		1.58	%		10.80	%		12.42	%		(0.97	%)		(4.24	%)		19.44	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,671		$	5,806		$	1,260		$	1,217		$	6,313		$	19,502
Ratios to average net assets:
Net investment income (loss)		(0.38	%)		(0.16	%)		—	f		(0.34	%)		(0.36	%)		0.25	%
Total expenses		1.71	%		1.72	%		1.63	%		1.62	%		1.60	%		1.58	%
Portfolio turnover rate		110	%		314	%		1,306	%		887	%		238	%		395	%

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

RETAILING 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	27.95		$	25.46		$	22.83		$	23.23		$	24.46		$	20.64
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.31	)		(.17	)		(.23	)		(.24	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		.49			2.84			2.80			(.17	)		(.97	)		4.01
Total from investment operations		.33			2.53			2.63			(.40	)		(1.21	)		3.82
Less distributions from:
Net investment income		—			(.03	)		—			—			(.02	)		—
Net realized gains		—			(.01	)		—			—			—			—
Total distributions		—			(.04	)		—			—			(.02	)		—
Net asset value, end of period	$	28.28		$	27.95		$	25.46		$	22.83		$	23.23		$	24.46
Total Returnd		1.18	%		9.97	%		11.52	%		(1.76	%)		(4.94	%)		18.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	385		$	468		$	603		$	1,601		$	2,532		$	3,455
Ratios to average net assets:
Net investment income (loss)		(1.12	%)		(1.15	%)		(0.71	%)		(1.00	%)		(1.04	%)		(0.88	%)
Total expenses		2.46	%		2.46	%		2.38	%		2.37	%		2.35	%		2.34	%
Portfolio turnover rate		110	%		314	%		1,306	%		887	%		238	%		395	%

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

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.

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	30.87		$	27.91		$	24.83		$	25.07		$	26.22		$	22.00
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.11	)		.05			(—	)c		(.11	)		.01
Net gain (loss) on investments (realized and unrealized)		.60			3.11			3.03			(.24	)		(1.02	)		4.21
Total from investment operations		.49			3.00			3.08			(.24	)		(1.13	)		4.22
Less distributions from:
Net investment income		—			(.03	)		—			—			(.02	)		—
Net realized gains		—			(.01	)		—			—			—			—
Total distributions		—			(.04	)		—			—			(.02	)		—
Net asset value, end of period	$	31.36		$	30.87		$	27.91		$	24.83		$	25.07		$	26.22
Total Return		1.59	%		10.81	%		12.40	%		(0.96	%)		(4.31	%)		19.18	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	836		$	6,265		$	5,079		$	411		$	3,407		$	8,871
Ratios to average net assets:
Net investment income (loss)		(0.68	%)		(0.37	%)		0.18	%		(—	)f		(0.44	%)		0.05	%
Total expenses		1.72	%		1.70	%		1.62	%		1.62	%		1.71	%		1.83	%
Portfolio turnover rate		110	%		314	%		1,306	%		887	%		238	%		395	%

a	Unaudited figures for the period ended September 30, 2019. 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.
f	Less than 0.01% or (0.01)%.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.	4.3%
Microsoft Corp.	4.3%
Alphabet, Inc. — Class A	3.9%
Facebook, Inc. — Class A	2.9%
Visa, Inc. — Class A	2.4%
Mastercard, Inc. — Class A	2.2%
Intel Corp.	2.0%
Cisco Systems, Inc.	2.0%
Oracle Corp.	1.8%
Adobe, Inc.	1.5%
Top Ten Total	27.3%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	4.33%	5.45%	14.26%	13.32%
A-Class Shares	4.20%	5.19%	13.98%	13.02%
A-Class Shares with sales charge‡	(0.75%)	0.20%	12.88%	12.47%
C-Class Shares	3.80%	4.39%	13.13%	12.18%
C-Class Shares with CDSC§	2.80%	3.41%	13.13%	12.18%
H-Class Shares**	4.21%	5.19%	13.93%	12.87%
S&P 500 Information Technology Index	9.60%	8.60%	18.21%	17.11%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 119

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
TECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Software - 28.6%
Microsoft Corp.		26,075	$	3,625,207
Oracle Corp.		28,088		1,545,683
Adobe, Inc.*		4,749		1,311,911
salesforce.com, Inc.*		8,620		1,279,553
Fidelity National Information Services, Inc.		7,691		1,021,057
Fiserv, Inc.*		9,077		940,286
Intuit, Inc.		3,510		933,449
VMware, Inc. — Class A		6,020		903,361
ServiceNow, Inc.*		3,000		761,550
Activision Blizzard, Inc.		13,566		717,913
Workday, Inc. — Class A*		4,133		702,445
Autodesk, Inc.*		4,312		636,882
Paychex, Inc.		7,424		614,485
Electronic Arts, Inc.*		6,170		603,549
Synopsys, Inc.*		3,723		510,982
ANSYS, Inc.*		2,195		485,885
Cadence Design Systems, Inc.*		7,287		481,525
NetEase, Inc. ADR		1,744		464,218
Splunk, Inc.*		3,920		462,011
Akamai Technologies, Inc.*		4,902		447,945
Atlassian Corporation plc — Class A*		3,429		430,134
SS&C Technologies Holdings, Inc.		8,250		425,453
Twilio, Inc. — Class A*,1		3,869		425,435
Broadridge Financial Solutions, Inc.		3,395		422,440
Take-Two Interactive Software, Inc.*		3,315		415,502
Citrix Systems, Inc.		4,205		405,867
Paycom Software, Inc.*		1,841		385,671
Jack Henry & Associates, Inc.		2,592		378,354
DocuSign, Inc.*		5,930		367,186
Momo, Inc. ADR		11,306		350,260
PTC, Inc.*		4,712		321,264
Aspen Technology, Inc.*		2,600		320,008
Dropbox, Inc. — Class A*		15,748		317,637
Coupa Software, Inc.*		2,420		313,559
MongoDB, Inc.*,1		2,360		284,333
CDK Global, Inc.		5,759		276,950
Total Software				24,289,950
Semiconductors - 20.3%
Intel Corp.		33,546		1,728,625
Texas Instruments, Inc.		9,658		1,248,200
NVIDIA Corp.		6,728		1,171,143
Broadcom, Inc.		4,195		1,158,114
QUALCOMM, Inc.		14,105		1,075,929
Applied Materials, Inc.		15,134		755,187
Micron Technology, Inc.*		16,891		723,779
Analog Devices, Inc.		6,434		718,871
NXP Semiconductor N.V.		6,043		659,412
Lam Research Corp.		2,791		645,028
Advanced Micro Devices, Inc.*		21,772		631,170
KLA Corp.		3,557		567,164
Taiwan Semiconductor Manufacturing Company Ltd. ADR		11,792		548,092
Xilinx, Inc.		5,629		539,821
Microchip Technology, Inc.		5,797		538,599
Marvell Technology Group Ltd.		18,244		455,553
Maxim Integrated Products, Inc.		7,760		449,382
Skyworks Solutions, Inc.		5,352		424,146
ASML Holding N.V. — Class G		1,700		422,314
Teradyne, Inc.		6,076		351,861
Cypress Semiconductor Corp.		14,352		334,976
Qorvo, Inc.*		4,517		334,890
ON Semiconductor Corp.*		16,617		319,213
IPG Photonics Corp.*		2,295		311,202
Monolithic Power Systems, Inc.		1,900		295,697
Entegris, Inc.		6,052		284,807
Cree, Inc.*		5,234		256,466
MKS Instruments, Inc.		2,725		251,463
Total Semiconductors				17,201,104
Internet - 17.1%
Alphabet, Inc. — Class A*		2,692		3,287,309
Facebook, Inc. — Class A*		13,866		2,469,257
Baidu, Inc. ADR*		6,555		673,592
Twitter, Inc.*		15,304		630,525
VeriSign, Inc.*		2,808		529,673
Palo Alto Networks, Inc.*		2,488		507,129
Shopify, Inc. — Class A*		1,594		496,786
Match Group, Inc.1		6,704		478,934
IAC/InterActiveCorp*		2,153		469,289
CDW Corp.		3,778		465,601
Symantec Corp.		18,344		433,469
GoDaddy, Inc. — Class A*		5,886		388,358
Weibo Corp. ADR*		8,519		381,225
Okta, Inc.*		3,834		377,496
Wix.com Ltd.*		3,215		375,319
YY, Inc. ADR*		6,279		353,068
Autohome, Inc. ADR*		4,126		342,994
F5 Networks, Inc.*		2,393		336,025
Proofpoint, Inc.*		2,420		312,301
Zendesk, Inc.*		4,262		310,614
Zillow Group, Inc. — Class C*,1		9,574		285,497
TripAdvisor, Inc.*		6,760		261,477
FireEye, Inc.*		14,250		190,095
Yelp, Inc. — Class A*		5,172		179,727
Total Internet				14,535,760
Computers - 13.0%
Apple, Inc.		16,230		3,635,033
International Business Machines Corp.		8,908		1,295,402
Accenture plc — Class A		4,077		784,211
Cognizant Technology Solutions Corp. — Class A		10,632		640,738
HP, Inc.		31,699		599,745
Hewlett Packard Enterprise Co.		33,825		513,125
Western Digital Corp.		7,820		466,385
Check Point Software Technologies Ltd.*		4,101		449,060
Seagate Technology plc		8,253		443,929
Fortinet, Inc.*		5,378		412,815
NetApp, Inc.		7,630		400,651
Amdocs Ltd.		5,120		338,483

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
TECHNOLOGY FUND

	Shares		Value
DXC Technology Co.		10,436	$	307,862
Zscaler, Inc.*		5,670		267,964
Nutanix, Inc. — Class A*		9,773		256,541
Lumentum Holdings, Inc.*		4,134		221,417
Total Computers				11,033,361
Diversified Financial Services - 5.8%
Visa, Inc. — Class A		12,075		2,077,021
Mastercard, Inc. — Class A		6,866		1,864,600
Pagseguro Digital Ltd. — Class A*		8,020		371,406
Western Union Co.		15,554		360,386
Alliance Data Systems Corp.		2,242		287,267
Total Diversified Financial Services				4,960,680
Commercial Services - 5.6%
PayPal Holdings, Inc.*		12,008		1,243,909
Global Payments, Inc.		6,913		1,099,167
Automatic Data Processing, Inc.		5,914		954,638
Square, Inc. — Class A*		9,779		605,809
FleetCor Technologies, Inc.*		1,962		562,662
Sabre Corp.		12,393		277,541
Total Commercial Services				4,743,726
Telecommunications - 4.8%
Cisco Systems, Inc.		33,700		1,665,117
Motorola Solutions, Inc.		3,567		607,852
Corning, Inc.		19,826		565,438
Arista Networks, Inc.*		2,015		481,424
Juniper Networks, Inc.		13,798		341,500
LogMeIn, Inc.		3,093		219,479
CommScope Holding Company, Inc.*		15,177		178,482
Total Telecommunications				4,059,292
Electronics - 2.5%
Amphenol Corp. — Class A		6,395		617,117
TE Connectivity Ltd.		4,431		412,881
Trimble, Inc.*		9,254		359,148
FLIR Systems, Inc.		5,720		300,815
Avnet, Inc.		5,590		248,671
Coherent, Inc.*		1,410		216,745
Total Electronics				2,155,377
Office & Business Equipment - 0.5%
Zebra Technologies Corp. — Class A*		1,804		372,291
Machinery-Diversified - 0.4%
Cognex Corp.		6,534		321,016
Advertising - 0.4%
Trade Desk, Inc. — Class A*		1,685		316,022
Electrical Components & Equipment - 0.4%
Universal Display Corp.		1,816		304,906
Energy-Alternate Sources - 0.3%
First Solar, Inc.*		4,384		254,316
Total Common Stocks
(Cost $64,269,642)				84,547,801
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	436,233		436,233
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		140,278		140,278
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		126,250		126,250
Total Repurchase Agreements
(Cost $702,761)				702,761
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.3%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		1,102,680		1,102,680
Total Securities Lending Collateral
(Cost $1,102,680)				1,102,680
Total Investments - 101.8%
(Cost $66,075,083)			$	86,353,242
Other Assets & Liabilities, net - (1.8%)				(1,517,364	)
Total Net Assets - 100.0%			$	84,835,878

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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 | 121

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
TECHNOLOGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	84,547,801	$	—	$	—	$	84,547,801
Repurchase Agreements		—		702,761		—		702,761
Securities Lending Collateral		1,102,680		—		—		1,102,680
Total Assets	$	85,650,481	$	702,761	$	—	$	86,353,242

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

TECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $1,091,367 of securities loaned (cost $65,372,322)	$	85,650,481
Repurchase agreements, at value (cost $702,761)		702,761
Receivables:
Dividends		50,220
Fund shares sold		16,819
Foreign tax reclaims		1,107
Securities lending income		555
Interest		44
Total assets		86,421,987
Liabilities:
Payable for:
Return of securities lending collateral		1,102,680
Fund shares redeemed		310,962
Management fees		57,123
Transfer agent and administrative fees		16,801
Portfolio accounting fees		6,720
Distribution and service fees		6,113
Trustees’ fees*		1,611
Miscellaneous		84,099
Total liabilities		1,586,109
Commitments and contingent liabilities (Note 9)		—
Net assets	$	84,835,878
Net assets consist of:
Paid in capital	$	66,329,078
Total distributable earnings (loss)		18,506,800
Net assets	$	84,835,878
Investor Class:
Net assets	$	68,143,866
Capital shares outstanding		641,778
Net asset value per share	$	106.18
A-Class:
Net assets	$	6,601,348
Capital shares outstanding		67,033
Net asset value per share	$	98.48
Maximum offering price per share (Net asset value divided by 95.25%)	$	103.39
C-Class:
Net assets	$	5,213,715
Capital shares outstanding		59,480
Net asset value per share	$	87.65
H-Class:
Net assets	$	4,876,949
Capital shares outstanding		50,649
Net asset value per share	$	96.29

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $883)	$	435,614
Interest		5,518
Income from securities lending, net		910
Total investment income		442,042
Expenses:
Management fees		365,193
Distribution and service fees:
A-Class		8,160
C-Class		25,886
H-Class		11,876
Transfer agent and administrative fees		107,409
Portfolio accounting fees		42,964
Trustees’ fees*		8,059
Custodian fees		6,013
Line of credit fees		75
Miscellaneous		98,986
Total expenses		674,621
Net investment loss		(232,579	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,792,073
Net realized gain		3,792,073
Net change in unrealized appreciation (depreciation) on:
Investments		(1,687,437	)
Net change in unrealized appreciation (depreciation)		(1,687,437	)
Net realized and unrealized gain		2,104,636
Net increase in net assets resulting from operations	$	1,872,057

^* 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 | 123

TECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(232,579	)	$	(522,994	)
Net realized gain on investments		3,792,073			3,767,489
Net change in unrealized appreciation (depreciation) on investments		(1,687,437	)		(1,364,919	)
Net increase in net assets resulting from operations		1,872,057			1,879,576
Distributions to shareholders:
Investor Class		—			(3,080,009	)
A-Class		—			(302,692	)
C-Class		—			(250,584	)
H-Class		—			(892,083	)
Total distributions to shareholders		—			(4,525,368	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		73,107,580			237,217,659
A-Class		1,766,726			5,302,160
C-Class		2,400,529			4,603,973
H-Class		23,603,264			93,765,945
Distributions reinvested
Investor Class		—			2,784,344
A-Class		—			296,049
C-Class		—			248,701
H-Class		—			861,141
Cost of shares redeemed
Investor Class		(67,243,436	)		(253,756,561	)
A-Class		(1,422,784	)		(4,878,516	)
C-Class		(2,944,933	)		(6,113,433	)
H-Class		(31,714,322	)		(120,685,679	)
Net decrease from capital share transactions		(2,447,376	)		(40,354,217	)
Net decrease in net assets		(575,319	)		(43,000,009	)
Net assets:
Beginning of period		85,411,197			128,411,206
End of period	$	84,835,878		$	85,411,197
Capital share activity:
Shares sold
Investor Class		692,650			2,394,637
A-Class		17,935			57,645
C-Class		27,247			56,674
H-Class		246,377			1,031,403
Shares issued from reinvestment of distributions
Investor Class		—			31,341
A-Class		—			3,586
C-Class		—			3,364
H-Class		—			10,668
Shares redeemed
Investor Class		(649,968	)		(2,638,782	)
A-Class		(14,462	)		(54,600	)
C-Class		(33,926	)		(73,935	)
H-Class		(334,754	)		(1,366,969	)
Net decrease in shares		(48,901	)		(544,968	)

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

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	101.77		$	94.62		$	75.45		$	60.53		$	61.23		$	55.90
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.31	)		(.29	)		(.09	)		(.06	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		4.64			11.99			20.66			15.01			(.64	)		5.43
Total from investment operations		4.41			11.68			20.37			14.92			(.70	)		5.33
Less distributions from:
Net realized gains		—			(4.53	)		(1.20	)		—			—			—
Total distributions		—			(4.53	)		(1.20	)		—			—			—
Net asset value, end of period	$	106.18		$	101.77		$	94.62		$	75.45		$	60.53		$	61.23
Total Return		4.33	%		13.05	%		27.11	%		24.63	%		(1.14	%)		9.53	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	68,144		$	60,972		$	76,820		$	55,016		$	22,167		$	20,458
Ratios to average net assets:
Net investment income (loss)		(0.43	%)		(0.32	%)		(0.34	%)		(0.13	%)		(0.10	%)		(0.17	%)
Total expenses		1.46	%		1.46	%		1.37	%		1.38	%		1.35	%		1.35	%
Portfolio turnover rate		98	%		255	%		270	%		320	%		388	%		280	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	94.51		$	88.40		$	70.74		$	56.88		$	57.69		$	52.79
Income (loss) from investment operations:
Net investment income (loss)b		(.33	)		(.49	)		(.45	)		(.25	)		(.14	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		4.30			11.13			19.31			14.11			(.67	)		5.11
Total from investment operations		3.97			10.64			18.86			13.86			(.81	)		4.90
Less distributions from:
Net realized gains		—			(4.53	)		(1.20	)		—			—			—
Total distributions		—			(4.53	)		(1.20	)		—			—			—
Net asset value, end of period	$	98.48		$	94.51		$	88.40		$	70.74		$	56.88		$	57.69
Total Returnc		4.20	%		12.77	%		26.77	%		24.37	%		(1.40	%)		9.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,601		$	6,007		$	5,033		$	3,294		$	8,327		$	9,960
Ratios to average net assets:
Net investment income (loss)		(0.67	%)		(0.54	%)		(0.56	%)		(0.40	%)		(0.25	%)		(0.39	%)
Total expenses		1.71	%		1.71	%		1.63	%		1.63	%		1.60	%		1.59	%
Portfolio turnover rate		98	%		255	%		270	%		320	%		388	%		280	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	84.44		$	80.06		$	64.64		$	52.37		$	53.50		$	49.30
Income (loss) from investment operations:
Net investment income (loss)b		(.63	)		(1.10	)		(1.02	)		(.64	)		(.59	)		(.58	)
Net gain (loss) on investments (realized and unrealized)		3.84			10.01			17.64			12.91			(.54	)		4.78
Total from investment operations		3.21			8.91			16.62			12.27			(1.13	)		4.20
Less distributions from:
Net realized gains		—			(4.53	)		(1.20	)		—			—			—
Total distributions		—			(4.53	)		(1.20	)		—			—			—
Net asset value, end of period	$	87.65		$	84.44		$	80.06		$	64.64		$	52.37		$	53.50
Total Returnc		3.80	%		11.93	%		25.85	%		23.41	%		(2.11	%)		8.52	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,214		$	5,586		$	6,409		$	3,203		$	2,234		$	2,910
Ratios to average net assets:
Net investment income (loss)		(1.43	%)		(1.33	%)		(1.37	%)		(1.12	%)		(1.12	%)		(1.13	%)
Total expenses		2.46	%		2.46	%		2.38	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		98	%		255	%		270	%		320	%		388	%		280	%

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	92.40		$	86.54		$	69.27		$	55.72		$	56.54		$	51.87
Income (loss) from investment operations:
Net investment income (loss)b		(.36	)		(.64	)		(.46	)		(.30	)		(.23	)		(.37	)
Net gain (loss) on investments (realized and unrealized)		4.25			11.03			18.93			13.85			(.59	)		5.04
Total from investment operations		3.89			10.39			18.47			13.55			(.82	)		4.67
Less distributions from:
Net realized gains		—			(4.53	)		(1.20	)		—			—			—
Total distributions		—			(4.53	)		(1.20	)		—			—			—
Net asset value, end of period	$	96.29		$	92.40		$	86.54		$	69.27		$	55.72		$	56.54
Total Return		4.21	%		12.76	%		26.78	%		24.32	%		(1.45	%)		9.00	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,877		$	12,846		$	40,149		$	21,504		$	1,829		$	2,831
Ratios to average net assets:
Net investment income (loss)		(0.74	%)		(0.71	%)		(0.58	%)		(0.46	%)		(0.42	%)		(0.69	%)
Total expenses		1.71	%		1.70	%		1.63	%		1.63	%		1.68	%		1.85	%
Portfolio turnover rate		98	%		255	%		270	%		320	%		388	%		280	%

a	Unaudited figures for the period ended September 30, 2019. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.	12.5%
Verizon Communications, Inc.	11.7%
Cisco Systems, Inc.	10.9%
T-Mobile US, Inc.	6.0%
Motorola Solutions, Inc.	4.0%
Sprint Corp.	3.6%
Arista Networks, Inc.	3.1%
CenturyLink, Inc.	2.7%
Juniper Networks, Inc.	2.2%
F5 Networks, Inc.	2.2%
Top Ten Total	58.9%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	0.24%	(3.15%)	4.02%	4.67%
A-Class Shares	0.13%	(3.37%)	3.73%	4.41%
A-Class Shares with sales charge‡	(4.63%)	(7.95%)	2.73%	3.91%
C-Class Shares	(0.25%)	(4.09%)	2.96%	3.74%
C-Class Shares with CDSC§	(1.24%)	(5.05%)	2.96%	3.74%
H-Class Shares**	0.11%	(3.16%)	3.75%	4.29%
S&P 500 Telecommunication Services Index	6.81%	5.69%	5.17%	9.49%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and S&P 500 Telecommunication Services Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 127

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
TELECOMMUNICATIONS FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Telecommunications - 91.6%
AT&T, Inc.		12,974	$	490,936
Verizon Communications, Inc.		7,620		459,943
Cisco Systems, Inc.		8,640		426,902
T-Mobile US, Inc.*		2,978		234,577
Motorola Solutions, Inc.		914		155,755
Sprint Corp.*		22,860		141,046
Arista Networks, Inc.*		517		123,522
CenturyLink, Inc.		8,503		106,118
Juniper Networks, Inc.		3,537		87,541
Ubiquiti, Inc.1		702		83,019
Zayo Group Holdings, Inc.*		2,433		82,479
GCI Liberty, Inc. — Class A*		1,168		72,498
Ciena Corp.*		1,840		72,183
ViaSat, Inc.*		828		62,365
Vodafone Group plc ADR		2,847		56,684
EchoStar Corp. — Class A*		1,420		56,260
Viavi Solutions, Inc.*		3,676		51,482
Telephone & Data Systems, Inc.		1,948		50,258
America Movil SAB de CV — Class L ADR		3,362		49,959
Iridium Communications, Inc.*		2,338		49,753
Acacia Communications, Inc.*		743		48,592
China Mobile Ltd. ADR		1,169		48,397
BCE, Inc.		991		47,974
Intelsat S.A.*		2,049		46,717
Vonage Holdings Corp.*		4,092		46,240
Telefonica Brasil S.A. ADR		3,508		46,200
CommScope Holding Company, Inc.*		3,890		45,746
TIM Participacoes S.A. ADR		3,026		43,453
KT Corp. ADR		3,840		43,430
Rogers Communications, Inc. — Class B1		876		42,688
TELUS Corp.		1,195		42,566
SK Telecom Company Ltd. ADR		1,914		42,491
InterDigital, Inc.		706		37,044
Shenandoah Telecommunications Co.		1,142		36,281
Plantronics, Inc.		958		35,753
NETGEAR, Inc.*		973		31,350
Total Telecommunications				3,598,202
Internet - 3.8%
F5 Networks, Inc.*		613		86,077
Cogent Communications Holdings, Inc.		847		46,670
Boingo Wireless, Inc.*		1,726		19,159
Total Internet				151,906
Computers - 2.4%
Lumentum Holdings, Inc.*		1,059		56,720
NetScout Systems, Inc.*		1,660		38,280
Total Computers				95,000
Software - 0.9%
Bandwidth, Inc. — Class A*		522		33,987
Electronics - 0.8%
II-VI, Inc.*		459		16,158
Applied Optoelectronics, Inc.*		1,268		14,227
Total Electronics				30,385
Total Common Stocks
(Cost $3,732,262)				3,909,480
SECURITIES LENDING COLLATERAL†,2 - 2.8%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%3		108,888		108,888
Total Securities Lending Collateral
(Cost $108,888)				108,888
Total Investments - 102.3%
(Cost $3,841,150)			$	4,018,368
Other Assets & Liabilities, net - (2.3%)				(89,573	)
Total Net Assets - 100.0%			$	3,928,795

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Securities lending collateral — See Note 7.
3	Rate indicated is the 7-day yield as of September 30, 2019.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
TELECOMMUNICATIONS FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	3,909,480	$	—	$	—	$	3,909,480
Securities Lending Collateral		108,888		—		—		108,888
Total Assets	$	4,018,368	$	—	$	—	$	4,018,368

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

TELECOMMUNICATIONS FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $107,418 of securities loaned (cost $3,841,150)	$	4,018,368
Cash		32,414
Receivables:
Dividends		7,142
Fund shares sold		4,585
Securities lending income		34
Total assets		4,062,543
Liabilities:
Line of Credit		15,000
Payable for:
Return of securities lending collateral		108,888
Management fees		2,599
Transfer agent and administrative fees		764
Distribution and service fees		321
Portfolio accounting fees		306
Trustees’ fees*		108
Fund shares redeemed		73
Miscellaneous		5,689
Total liabilities		133,748
Commitments and contingent liabilities (Note 9)		—
Net assets	$	3,928,795
Net assets consist of:
Paid in capital	$	5,599,026
Total distributable earnings (loss)		(1,670,231	)
Net assets	$	3,928,795
Investor Class:
Net assets	$	2,823,690
Capital shares outstanding		56,143
Net asset value per share	$	50.29
A-Class:
Net assets	$	622,816
Capital shares outstanding		13,512
Net asset value per share	$	46.09
Maximum offering price per share (Net asset value divided by 95.25%)	$	48.39
C-Class:
Net assets	$	172,276
Capital shares outstanding		4,232
Net asset value per share	$	40.71
H-Class:
Net assets	$	310,013
Capital shares outstanding		6,900
Net asset value per share	$	44.93

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $808)	$	100,778
Interest		335
Income from securities lending, net		99
Total investment income		101,212
Expenses:
Management fees		26,668
Distribution and service fees:
A-Class		771
C-Class		955
H-Class		651
Transfer agent and administrative fees		7,844
Registration fees		6,593
Portfolio accounting fees		3,137
Custodian fees		468
Trustees’ fees*		380
Line of credit fees		20
Miscellaneous		892
Total expenses		48,379
Net investment income		52,833
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		578,173
Net realized gain		578,173
Net change in unrealized appreciation (depreciation) on:
Investments		(632,448	)
Net change in unrealized appreciation (depreciation)		(632,448	)
Net realized and unrealized loss		(54,275	)
Net decrease in net assets resulting from operations	$	(1,442	)

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

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

TELECOMMUNICATIONS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	52,833		$	143,466
Net realized gain (loss) on investments		578,173			(2,345,965	)
Net change in unrealized appreciation (depreciation) on investments		(632,448	)		281,163
Net decrease in net assets resulting from operations		(1,442	)		(1,921,336	)
Distributions to shareholders:
Investor Class		—			(19,936	)
A-Class		—			(1,268	)
C-Class		—			(740	)
H-Class		—			(26,326	)
Total distributions to shareholders		—			(48,270	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		15,404,204			56,729,206
A-Class		446,898			2,672,597
C-Class		908,521			1,119,858
H-Class		1,270,784			101,868,098
Distributions reinvested
Investor Class		—			19,788
A-Class		—			1,268
C-Class		—			722
H-Class		—			26,326
Cost of shares redeemed
Investor Class		(15,575,696	)		(54,522,942	)
A-Class		(335,187	)		(2,655,183	)
C-Class		(985,405	)		(1,246,196	)
H-Class		(1,286,205	)		(100,226,371	)
Net increase (decrease) from capital share transactions		(152,086	)		3,787,171
Net increase (decrease) in net assets		(153,528	)		1,817,565
Net assets:
Beginning of period		4,082,323			2,264,758
End of period	$	3,928,795		$	4,082,323
Capital share activity:
Shares sold
Investor Class		304,120			1,158,535
A-Class		9,584			59,475
C-Class		22,207			27,570
H-Class		28,180			2,399,817
Shares issued from reinvestment of distributions
Investor Class		—			409
A-Class		—			29
C-Class		—			18
H-Class		—			610
Shares redeemed
Investor Class		(307,556	)		(1,126,821	)
A-Class		(7,105	)		(58,699	)
C-Class		(24,127	)		(30,837	)
H-Class		(28,730	)		(2,396,248	)
Net increase (decrease) in shares		(3,427	)		33,858

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	50.17		$	47.66		$	47.95		$	42.91		$	45.56		$	45.51
Income (loss) from investment operations:
Net investment income (loss)b		.49			.46			.43			.49			.44			.72
Net gain (loss) on investments (realized and unrealized)		(.37	)		2.17	e		1.17			5.55			(1.64	)		.63
Total from investment operations		.12			2.63			1.60			6.04			(1.20	)		1.35
Less distributions from:
Net investment income		—			(.02	)		(1.89	)		(1.00	)		(1.45	)		(1.30	)
Net realized gains		—			(.10	)		—			—			—			—
Total distributions		—			(.12	)		(1.89	)		(1.00	)		(1.45	)		(1.30	)
Net asset value, end of period	$	50.29		$	50.17		$	47.66		$	47.95		$	42.91		$	45.56
Total Return		0.24	%		5.52	%		3.33	%		14.21	%		(2.49	%)		2.93	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,824		$	2,989		$	1,309		$	12,539		$	19,198		$	1,316
Ratios to average net assets:
Net investment income (loss)		1.91	%		0.94	%		0.89	%		1.09	%		0.97	%		1.55	%
Total expenses		1.47	%		1.47	%		1.38	%		1.38	%		1.34	%		1.36	%
Portfolio turnover rate		336	%		2,115	%		1,455	%		605	%		660	%		804	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	46.03		$	43.84		$	44.39		$	39.88		$	42.63		$	42.74
Income (loss) from investment operations:
Net investment income (loss)b		.19			.43			.20			.32			.58			.58
Net gain (loss) on investments (realized and unrealized)		(.13	)		1.88	e		1.14			5.19			(1.88	)		.61
Total from investment operations		.06			2.31			1.34			5.51			(1.30	)		1.19
Less distributions from:
Net investment income		—			(.02	)		(1.89	)		(1.00	)		(1.45	)		(1.30	)
Net realized gains		—			(.10	)		—			—			—			—
Total distributions		—			(.12	)		(1.89	)		(1.00	)		(1.45	)		(1.30	)
Net asset value, end of period	$	46.09		$	46.03		$	43.84		$	44.39		$	39.88		$	42.63
Total Returnc		0.13	%		5.27	%		3.08	%		13.88	%		(2.90	%)		2.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	623		$	508		$	448		$	1,081		$	1,544		$	454
Ratios to average net assets:
Net investment income (loss)		0.81	%		0.96	%		0.45	%		0.75	%		1.41	%		1.35	%
Total expenses		1.71	%		1.71	%		1.63	%		1.62	%		1.59	%		1.60	%
Portfolio turnover rate		336	%		2,115	%		1,455	%		605	%		660	%		804	%

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

TELECOMMUNICATIONS 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	40.81		$	39.17		$	40.14		$	36.43		$	39.35		$	39.89
Income (loss) from investment operations:
Net investment income (loss)b		.07			.06			(.09	)		.03			(.01	)		.06
Net gain (loss) on investments (realized and unrealized)		(.17	)		1.70	e		1.01			4.68			(1.46	)		.70
Total from investment operations		(.10	)		1.76			.92			4.71			(1.47	)		.76
Less distributions from:
Net investment income		—			(.02	)		(1.89	)		(1.00	)		(1.45	)		(1.30	)
Net realized gains		—			(.10	)		—			—			—			—
Total distributions		—			(.12	)		(1.89	)		(1.00	)		(1.45	)		(1.30	)
Net asset value, end of period	$	40.71		$	40.81		$	39.17		$	40.14		$	36.43		$	39.35
Total Returnc		(0.25	%)		4.49	%		2.30	%		13.05	%		(3.59	%)		1.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	172		$	251		$	368		$	406		$	248		$	499
Ratios to average net assets:
Net investment income (loss)		0.33	%		0.15	%		(0.22	%)		0.07	%		(0.03	%)		0.14	%
Total expenses		2.46	%		2.46	%		2.38	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		336	%		2,115	%		1,455	%		605	%		660	%		804	%

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

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.

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	44.88		$	42.66		$	43.21		$	38.85		$	41.59		$	41.86
Income (loss) from investment operations:
Net investment income (loss)b		.25			1.16			(.06	)		.58			.17			.60
Net gain (loss) on investments (realized and unrealized)		(.20	)		1.18	e		1.40			4.78			(1.46	)		.43
Total from investment operations		.05			2.34			1.34			5.36			(1.29	)		1.03
Less distributions from:
Net investment income		—			(.02	)		(1.89	)		(1.00	)		(1.45	)		(1.30	)
Net realized gains		—			(.10	)		—			—			—			—
Total distributions		—			(.12	)		(1.89	)		(1.00	)		(1.45	)		(1.30	)
Net asset value, end of period	$	44.93		$	44.88		$	42.66		$	43.21		$	38.85		$	41.59
Total Return		0.11	%		5.51	%		3.07	%		13.94	%		(2.95	%)		2.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	310		$	334		$	140		$	1,213		$	10,353		$	151
Ratios to average net assets:
Net investment income (loss)		1.10	%		2.73	%		(0.14	%)		1.44	%		0.44	%		1.40	%
Total expenses		1.71	%		1.74	%		1.63	%		1.62	%		1.64	%		1.86	%
Portfolio turnover rate		336	%		2,115	%		1,455	%		605	%		659	%		804	%

a	Unaudited figures for the period ended September 30, 2019. 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.
e	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
Union Pacific Corp.	5.8%
United Parcel Service, Inc. — Class B	5.6%
CSX Corp.	4.1%
General Motors Co.	3.9%
Norfolk Southern Corp.	3.7%
FedEx Corp.	3.6%
Tesla, Inc.	3.5%
Ford Motor Co.	3.3%
Delta Air Lines, Inc.	3.3%
Southwest Airlines Co.	2.9%
Top Ten Total	39.7%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	1.50%	(6.74%)	4.33%	11.26%
A-Class Shares	1.36%	(6.99%)	4.07%	11.00%
A-Class Shares with sales charge‡	(3.45%)	(11.40%)	3.06%	10.46%
C-Class Shares	0.97%	(7.70%)	3.29%	10.17%
C-Class Shares with CDSC§	(0.03%)	(8.52%)	3.29%	10.17%
H-Class Shares**	1.34%	(7.01%)	4.02%	10.83%
S&P 500 Industrials Index	4.59%	1.39%	9.73%	13.43%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Industrials Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 135

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
TRANSPORTATION FUND

	Shares		Value
COMMON STOCKS† - 99.3%
Transportation - 46.5%
Union Pacific Corp.		3,851	$	623,785
United Parcel Service, Inc. — Class B		5,068		607,248
CSX Corp.		6,326		438,202
Norfolk Southern Corp.		2,236		401,720
FedEx Corp.		2,626		382,267
Old Dominion Freight Line, Inc.		1,271		216,032
Kansas City Southern		1,609		214,013
Expeditors International of Washington, Inc.		2,829		210,167
J.B. Hunt Transport Services, Inc.		1,819		201,272
CH Robinson Worldwide, Inc.		2,326		197,198
Knight-Swift Transportation Holdings, Inc.		4,184		151,879
XPO Logistics, Inc.*		2,090		149,581
Genesee & Wyoming, Inc. — Class A*		1,331		147,089
Kirby Corp.*		1,627		133,674
Landstar System, Inc.		1,102		124,063
Canadian Pacific Railway Ltd.		537		119,461
Canadian National Railway Co.		1,306		117,357
ZTO Express Cayman, Inc. ADR		5,300		113,049
Ryder System, Inc.		1,882		97,431
Werner Enterprises, Inc.		2,661		93,933
Saia, Inc.*		960		89,952
Hub Group, Inc. — Class A*		1,612		74,958
ArcBest Corp.		1,706		51,948
Atlas Air Worldwide Holdings, Inc.*		2,026		51,116
Total Transportation				5,007,395
Airlines - 18.6%
Delta Air Lines, Inc.		6,196		356,890
Southwest Airlines Co.		5,838		315,310
United Airlines Holdings, Inc.*		3,124		276,193
American Airlines Group, Inc.		7,290		196,611
Alaska Air Group, Inc.		2,561		166,235
JetBlue Airways Corp.*		7,682		128,673
Ryanair Holdings plc ADR*		1,694		112,448
Copa Holdings S.A. — Class A		1,010		99,737
SkyWest, Inc.		1,728		99,187
Spirit Airlines, Inc.*		2,504		90,895
Allegiant Travel Co. — Class A		603		90,245
Hawaiian Holdings, Inc.		2,495		65,519
Total Airlines				1,997,943
Auto Manufacturers - 13.5%
General Motors Co.		11,254		421,800
Tesla, Inc.*,1		1,571		378,407
Ford Motor Co.		38,974		357,002
Ferrari N.V.		669		103,086
Fiat Chrysler Automobiles N.V.		7,772		100,647
Tata Motors Ltd. ADR*		11,060		92,794
Total Auto Manufacturers				1,453,736
Auto Parts & Equipment - 12.0%
Aptiv plc		2,039		178,249
BorgWarner, Inc.		4,520		165,794
Lear Corp.		1,346		158,694
Goodyear Tire & Rubber Co.		7,863		113,267
Magna International, Inc.		1,983		105,753
Autoliv, Inc.1		1,305		102,938
Visteon Corp.*		1,131		93,353
Delphi Technologies plc		6,446		86,376
Adient plc		3,750		86,100
Dana, Inc.		5,764		83,232
Tenneco, Inc. — Class A		4,770		59,721
American Axle & Manufacturing Holdings, Inc.*		7,183		59,044
Total Auto Parts & Equipment				1,292,521
Commercial Services - 4.1%
AMERCO		410		159,916
Macquarie Infrastructure Corp.		2,740		108,148
Hertz Global Holdings, Inc.*		6,208		85,919
Avis Budget Group, Inc.*		2,993		84,582
Total Commercial Services				438,565
Leisure Time - 2.2%
Harley-Davidson, Inc.		3,993		143,628
Fox Factory Holding Corp.*		1,462		90,995
Total Leisure Time				234,623
Electronics - 1.4%
Gentex Corp.		5,603		154,279
Home Builders - 1.0%
Thor Industries, Inc.		1,871		105,973
Total Common Stocks
(Cost $9,443,053)				10,685,035
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	43,022		43,022
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		13,834		13,834
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		12,451		12,451
Total Repurchase Agreements
(Cost $69,307)				69,307

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
TRANSPORTATION FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,3 - 2.9%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		310,141	$	310,141
Total Securities Lending Collateral
(Cost $310,141)				310,141
Total Investments - 102.8%
(Cost $9,822,501)			$	11,064,483
Other Assets & Liabilities, net - (2.8%)				(303,431	)
Total Net Assets - 100.0%			$	10,761,052

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	10,685,035	$	—	$	—	$	10,685,035
Repurchase Agreements		—		69,307		—		69,307
Securities Lending Collateral		310,141		—		—		310,141
Total Assets	$	10,995,176	$	69,307	$	—	$	11,064,483

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

TRANSPORTATION FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $303,077 of securities loaned (cost $9,753,194)	$	10,995,176
Repurchase agreements, at value (cost $69,307)		69,307
Cash		436
Receivables:
Fund shares sold		94,946
Dividends		2,495
Foreign tax reclaims		300
Securities lending income		75
Interest		4
Total assets		11,162,739
Liabilities:
Payable for:
Return of securities lending collateral		310,141
Securities purchased		63,570
Management fees		7,503
Fund shares redeemed		2,919
Transfer agent and administrative fees		2,207
Distribution and service fees		1,621
Portfolio accounting fees		882
Trustees’ fees*		241
Miscellaneous		12,603
Total liabilities		401,687
Commitments and contingent liabilities (Note 9)		—
Net assets	$	10,761,052
Net assets consist of:
Paid in capital	$	8,869,302
Total distributable earnings (loss)		1,891,750
Net assets	$	10,761,052
Investor Class:
Net assets	$	6,378,172
Capital shares outstanding		125,492
Net asset value per share	$	50.83
A-Class:
Net assets	$	2,619,041
Capital shares outstanding		56,693
Net asset value per share	$	46.20
Maximum offering price per share (Net asset value divided by 95.25%)	$	48.50
C-Class:
Net assets	$	1,309,140
Capital shares outstanding		31,515
Net asset value per share	$	41.54
H-Class:
Net assets	$	454,699
Capital shares outstanding		10,165
Net asset value per share	$	44.73

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $772)	$	139,832
Interest		736
Income from securities lending, net		455
Total investment income		141,023
Expenses:
Management fees		54,206
Distribution and service fees:
A-Class		3,623
C-Class		7,060
H-Class		731
Transfer agent and administrative fees		15,943
Registration fees		7,565
Portfolio accounting fees		6,377
Trustees’ fees*		2,012
Custodian fees		927
Line of credit fees		2
Miscellaneous		6,269
Total expenses		104,715
Net investment income		36,308
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,982,898
Net realized gain		1,982,898
Net change in unrealized appreciation (depreciation) on:
Investments		(2,093,235	)
Net change in unrealized appreciation (depreciation)		(2,093,235	)
Net realized and unrealized loss		(110,337	)
Net decrease in net assets resulting from operations	$	(74,029	)

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

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

TRANSPORTATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	36,308		$	8,472
Net realized gain on investments		1,982,898			1,335,509
Net change in unrealized appreciation (depreciation) on investments		(2,093,235	)		(3,063,248	)
Net decrease in net assets resulting from operations		(74,029	)		(1,719,267	)
Distributions to shareholders:
Investor Class		—			(1,010,270	)
A-Class		—			(383,942	)
C-Class		—			(201,966	)
H-Class		—			(62,557	)
Total distributions to shareholders		—			(1,658,735	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		21,936,686			88,665,130
A-Class		321,851			6,766,786
C-Class		467,756			1,542,021
H-Class		8,602,530			45,730,425
Distributions reinvested
Investor Class		—			967,012
A-Class		—			377,924
C-Class		—			195,596
H-Class		—			61,336
Cost of shares redeemed
Investor Class		(23,360,545	)		(96,051,965	)
A-Class		(909,771	)		(9,156,572	)
C-Class		(651,015	)		(2,449,793	)
H-Class		(8,663,782	)		(47,030,659	)
Net decrease from capital share transactions		(2,256,290	)		(10,382,759	)
Net decrease in net assets		(2,330,319	)		(13,760,761	)
Net assets:
Beginning of period		13,091,371			26,852,132
End of period	$	10,761,052		$	13,091,371
Capital share activity:
Shares sold
Investor Class		426,527			1,536,445
A-Class		6,760			125,939
C-Class		11,210			31,916
H-Class		194,006			858,575
Shares issued from reinvestment of distributions
Investor Class		—			20,042
A-Class		—			8,599
C-Class		—			4,919
H-Class		—			1,441
Shares redeemed
Investor Class		(460,671	)		(1,677,779	)
A-Class		(19,527	)		(170,903	)
C-Class		(15,594	)		(52,091	)
H-Class		(194,150	)		(886,172	)
Net decrease in shares		(51,439	)		(199,069	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	50.08		$	59.10		$	53.52		$	46.23		$	52.06		$	44.63
Income (loss) from investment operations:
Net investment income (loss)b		.19			.09			(.04	)		.09			.16			.18
Net gain (loss) on investments (realized and unrealized)		.56	d		(4.02	)		6.85			7.37			(5.78	)		7.25
Total from investment operations		.75			(3.93	)		6.81			7.46			(5.62	)		7.43
Less distributions from:
Net investment income		—			—			—			(.17	)		(.21	)		—
Net realized gains		—			(5.09	)		(1.23	)		—			—			—
Total distributions		—			(5.09	)		(1.23	)		(.17	)		(.21	)		—
Net asset value, end of period	$	50.83		$	50.08		$	59.10		$	53.52		$	46.23		$	52.06
Total Return		1.50	%		(6.33	%)		12.67	%		16.14	%		(10.80	%)		16.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,378		$	7,994		$	16,603		$	32,911		$	13,638		$	42,947
Ratios to average net assets:
Net investment income (loss)		0.73	%		0.16	%		(0.07	%)		0.17	%		0.33	%		0.37	%
Total expenses		1.46	%		1.46	%		1.37	%		1.38	%		1.34	%		1.35	%
Portfolio turnover rate		209	%		476	%		483	%		676	%		219	%		247	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	45.58		$	54.43		$	49.50		$	42.87		$	48.41		$	41.61
Income (loss) from investment operations:
Net investment income (loss)b		.14			(.01	)		(.07	)		(.06	)		.04			.05
Net gain (loss) on investments (realized and unrealized)		.48	d		(3.75	)		6.23			6.86			(5.37	)		6.75
Total from investment operations		.62			(3.76	)		6.16			6.80			(5.33	)		6.80
Less distributions from:
Net investment income		—			—			—			(.17	)		(.21	)		—
Net realized gains		—			(5.09	)		(1.23	)		—			—			—
Total distributions		—			(5.09	)		(1.23	)		(.17	)		(.21	)		—
Net asset value, end of period	$	46.20		$	45.58		$	54.43		$	49.50		$	42.87		$	48.41
Total Returnc		1.36	%		(6.57	%)		12.38	%		15.87	%		(11.01	%)		16.34	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,619		$	3,166		$	5,760		$	4,742		$	5,339		$	15,359
Ratios to average net assets:
Net investment income (loss)		0.61	%		(0.03	%)		(0.12	%)		(0.12	%)		0.08	%		0.12	%
Total expenses		1.71	%		1.71	%		1.63	%		1.63	%		1.60	%		1.60	%
Portfolio turnover rate		209	%		476	%		483	%		676	%		219	%		247	%

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

TRANSPORTATION 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	41.14		$	50.04		$	45.93		$	40.09		$	45.63		$	39.52
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.41	)		(.43	)		(.34	)		(.24	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		.43	d		(3.40	)		5.77			6.35			(5.09	)		6.38
Total from investment operations		.40			(3.81	)		5.34			6.01			(5.33	)		6.11
Less distributions from:
Net investment income		—			—			—			(.17	)		(.21	)		—
Net realized gains		—			(5.09	)		(1.23	)		—			—			—
Total distributions		—			(5.09	)		(1.23	)		(.17	)		(.21	)		—
Net asset value, end of period	$	41.54		$	41.14		$	50.04		$	45.93		$	40.09		$	45.63
Total Returnc		0.97	%		(7.27	%)		11.56	%		15.00	%		(11.69	%)		15.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,309		$	1,477		$	2,560		$	2,307		$	2,977		$	6,405
Ratios to average net assets:
Net investment income (loss)		(0.16	%)		(0.87	%)		(0.87	%)		(0.81	%)		(0.57	%)		(0.62	%)
Total expenses		2.46	%		2.46	%		2.38	%		2.38	%		2.35	%		2.35	%
Portfolio turnover rate		209	%		476	%		483	%		676	%		219	%		247	%

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

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.

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016e			Year Ended March 31, 2015e
Per Share Data
Net asset value, beginning of period	$	44.14		$	52.90		$	48.15		$	41.71		$	47.12		$	40.61
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		(.02	)		(.13	)		(.13	)		(.09	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		.60	d		(3.65	)		6.11			6.74			(5.11	)		6.61
Total from investment operations		.59			(3.67	)		5.98			6.61			(5.20	)		6.51
Less distributions from:
Net investment income		—			—			—			(.17	)		(.21	)		—
Net realized gains		—			(5.09	)		(1.23	)		—			—			—
Total distributions		—			(5.09	)		(1.23	)		(.17	)		(.21	)		—
Net asset value, end of period	$	44.73		$	44.14		$	52.90		$	48.15		$	41.71		$	47.12
Total Return		1.34	%		(6.61	%)		12.33	%		15.88	%		(11.04	%)		16.03	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	455		$	455		$	1,929		$	4,127		$	9,031		$	6,249
Ratios to average net assets:
Net investment income (loss)		(0.04	%)		(0.04	%)		(0.24	%)		(0.30	%)		(0.20	%)		(0.22	%)
Total expenses		1.71	%		1.69	%		1.63	%		1.63	%		1.72	%		1.85	%
Portfolio turnover rate		209	%		476	%		483	%		676	%		219	%		247	%

a	Unaudited figures for the period ended September 30, 2019. 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	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the year because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
e	Effective September 30, 2015, the Fund’s Advisor Class share were converted into H-Class shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.	5.3%
Duke Energy Corp.	4.1%
Southern Co.	4.0%
Dominion Energy, Inc.	4.0%
Exelon Corp.	3.4%
American Electric Power Company, Inc.	3.4%
Sempra Energy	3.2%
Xcel Energy, Inc.	2.8%
Consolidated Edison, Inc.	2.8%
Public Service Enterprise Group, Inc.	2.8%
Top Ten Total	35.8%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	8.98%	20.21%	11.02%	11.20%
A-Class Shares	8.85%	19.88%	10.74%	10.93%
A-Class Shares with sales charge‡	3.68%	14.19%	9.67%	10.39%
C-Class Shares	8.42%	18.97%	9.93%	10.10%
C-Class Shares with CDSC§	7.42%	17.97%	9.93%	10.10%
H-Class Shares**	8.85%	19.86%	10.71%	10.77%
S&P 500 Utilities Index	13.14%	27.10%	12.89%	12.51%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P 500 Index and the S&P 500 Utilities Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Effective September 30, 2015, the Fund’s Advisor Class shares were converted into H-Class shares.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 143

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
UTILITIES FUND

	Shares		Value
COMMON STOCKS† - 99.9%
Electric - 82.8%
NextEra Energy, Inc.		21,193	$	4,937,757
Duke Energy Corp.		40,281		3,861,337
Southern Co.		59,943		3,702,679
Dominion Energy, Inc.		45,471		3,684,970
Exelon Corp.		65,394		3,159,184
American Electric Power Company, Inc.		33,348		3,124,374
Sempra Energy		20,463		3,020,543
Xcel Energy, Inc.		40,955		2,657,570
Consolidated Edison, Inc.		27,482		2,596,225
Public Service Enterprise Group, Inc.		41,536		2,578,555
WEC Energy Group, Inc.		26,533		2,523,288
Eversource Energy		28,634		2,447,348
Edison International		32,233		2,431,013
FirstEnergy Corp.		48,625		2,345,184
DTE Energy Co.		17,070		2,269,627
Entergy Corp.		19,097		2,241,224
PPL Corp.		69,403		2,185,501
Ameren Corp.		26,026		2,083,381
CMS Energy Corp.		30,751		1,966,526
Avangrid, Inc.		35,643		1,862,347
Evergy, Inc.		27,499		1,830,333
CenterPoint Energy, Inc.		59,936		1,808,869
Vistra Energy Corp.		62,170		1,661,804
Alliant Energy Corp.		30,552		1,647,669
AES Corp.		93,686		1,530,829
Pinnacle West Capital Corp.		15,514		1,505,944
NRG Energy, Inc.		37,209		1,473,476
OGE Energy Corp.		30,655		1,391,124
IDACORP, Inc.		9,760		1,099,659
Hawaiian Electric Industries, Inc.		22,803		1,040,045
Portland General Electric Co.		18,261		1,029,373
Black Hills Corp.		12,927		991,889
ALLETE, Inc.		11,219		980,653
PNM Resources, Inc.		18,092		942,231
PG&E Corp.*		92,360		923,600
NorthWestern Corp.		11,917		894,371
Avista Corp.		17,214		833,846
Total Electric				77,264,348
Gas - 11.2%
Atmos Energy Corp.1		14,813		1,687,053
NiSource, Inc.		51,559		1,542,645
UGI Corp.		29,645		1,490,254
ONE Gas, Inc.		10,805		1,038,469
Southwest Gas Holdings, Inc.		11,150		1,015,096
Spire, Inc.		11,145		972,290
New Jersey Resources Corp.		20,766		939,038
National Fuel Gas Co.		19,713		924,934
South Jersey Industries, Inc.		24,108		793,394
Total Gas				10,403,173
Water - 3.9%
American Water Works Company, Inc.		17,611		2,187,814
Aqua America, Inc.		31,795		1,425,370
Total Water				3,613,184
Building Materials - 1.2%
MDU Resources Group, Inc.		38,818		1,094,279
Energy-Alternate Sources - 0.8%
Pattern Energy Group, Inc. — Class A		27,453		739,309
Pipelines - 0.0%
Kinder Morgan, Inc.		1		21
Total Common Stocks
(Cost $78,959,716)				93,114,314
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	341,594		341,594
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		109,845		109,845
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		98,861		98,861
Total Repurchase Agreements
(Cost $550,300)				550,300
	Shares
SECURITIES LENDING COLLATERAL†,3 - 1.4%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		1,332,644		1,332,644
Total Securities Lending Collateral
(Cost $1,332,644)				1,332,644
Total Investments - 101.9%
(Cost $80,842,660)			$	94,997,258
Other Assets & Liabilities, net - (1.9%)				(1,739,013	)
Total Net Assets - 100.0%			$	93,258,245

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
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	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	93,114,314	$	—	$	—	$	93,114,314
Repurchase Agreements		—		550,300		—		550,300
Securities Lending Collateral		1,332,644		—		—		1,332,644
Total Assets	$	94,446,958	$	550,300	$	—	$	94,997,258

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

UTILITIES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $1,302,788 of securities loaned (cost $80,292,360)	$	94,446,958
Repurchase agreements, at value (cost $550,300)		550,300
Receivables:
Securities sold		4,346,494
Dividends		194,185
Fund shares sold		98,652
Foreign tax reclaims		315
Securities lending income		41
Interest		35
Total assets		99,636,980
Liabilities:
Payable for:
Fund shares redeemed		4,844,153
Return of securities lending collateral		1,332,644
Management fees		64,139
Transfer agent and administrative fees		18,864
Portfolio accounting fees		7,546
Distribution and service fees		7,488
Trustees’ fees*		1,954
Miscellaneous		101,947
Total liabilities		6,378,735
Commitments and contingent liabilities (Note 9)		—
Net assets	$	93,258,245
Net assets consist of:
Paid in capital	$	76,150,544
Total distributable earnings (loss)		17,107,701
Net assets	$	93,258,245
Investor Class:
Net assets	$	73,373,403
Capital shares outstanding		1,456,376
Net asset value per share	$	50.38
A-Class:
Net assets	$	6,564,639
Capital shares outstanding		141,893
Net asset value per share	$	46.26
Maximum offering price per share (Net asset value divided by 95.25%)	$	48.57
C-Class:
Net assets	$	6,860,680
Capital shares outstanding		177,597
Net asset value per share	$	38.63
H-Class:
Net assets	$	6,459,523
Capital shares outstanding		145,028
Net asset value per share	$	44.54

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $156)	$	1,622,329
Interest		5,922
Income from securities lending, net		290
Total investment income		1,628,541
Expenses:
Management fees		448,565
Distribution and service fees:
A-Class		7,802
C-Class		33,225
H-Class		6,059
Transfer agent and administrative fees		131,931
Portfolio accounting fees		52,772
Registration fees		43,494
Trustees’ fees*		13,495
Custodian fees		7,443
Line of credit fees		274
Miscellaneous		73,665
Total expenses		818,725
Net investment income		809,816
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		8,906,857
Net realized gain		8,906,857
Net change in unrealized appreciation (depreciation) on:
Investments		(843,303	)
Net change in unrealized appreciation (depreciation)		(843,303	)
Net realized and unrealized gain		8,063,554
Net increase in net assets resulting from operations	$	8,873,370

^* 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.

UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	809,816		$	965,922
Net realized gain (loss) on investments		8,906,857			(5,232,520	)
Net change in unrealized appreciation (depreciation) on investments		(843,303	)		12,114,697
Net increase in net assets resulting from operations		8,873,370			7,848,099
Capital share transactions:
Proceeds from sale of shares
Investor Class		108,566,807			323,470,925
A-Class		3,284,245			22,705,354
C-Class		1,613,714			3,526,128
H-Class		13,461,488			57,147,601
Cost of shares redeemed
Investor Class		(148,079,783	)		(232,777,368	)
A-Class		(2,897,113	)		(21,114,229	)
C-Class		(1,786,838	)		(4,556,272	)
H-Class		(13,375,718	)		(52,476,424	)
Net increase (decrease) from capital share transactions		(39,213,198	)		95,925,715
Net increase (decrease) in net assets		(30,339,828	)		103,773,814
Net assets:
Beginning of period		123,598,073			19,824,259
End of period	$	93,258,245		$	123,598,073
Capital share activity:
Shares sold
Investor Class		2,302,836			7,609,327
A-Class		77,011			589,193
C-Class		44,587			107,447
H-Class		319,542			1,572,817
Shares redeemed
Investor Class		(3,127,380	)		(5,559,152	)
A-Class		(67,647	)		(553,480	)
C-Class		(49,132	)		(140,076	)
H-Class		(321,947	)		(1,448,772	)
Net increase (decrease) in shares		(822,130	)		2,177,304

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	46.23		$	39.03		$	39.34		$	40.23		$	36.98		$	34.01
Income (loss) from investment operations:
Net investment income (loss)b		.39			.77			.68			.59			.73			.84
Net gain (loss) on investments (realized and unrealized)		3.76			6.43			.06			2.25			3.09			2.26
Total from investment operations		4.15			7.20			.74			2.84			3.82			3.10
Less distributions from:
Net investment income		—			—			(.53	)		(.87	)		(.57	)		(.13	)
Net realized gains		—			—			(.52	)		(2.86	)		—			—
Total distributions		—			—			(1.05	)		(3.73	)		(.57	)		(.13	)
Net asset value, end of period	$	50.38		$	46.23		$	39.03		$	39.34		$	40.23		$	36.98
Total Return		8.98	%		18.45	%		1.72	%		8.04	%		10.61	%		9.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	73,373		$	105,443		$	9,006		$	24,116		$	50,753		$	55,156
Ratios to average net assets:
Net investment income (loss)		1.63	%		1.80	%		1.67	%		1.47	%		2.00	%		2.31	%
Total expenses		1.46	%		1.48	%		1.38	%		1.38	%		1.35	%		1.35	%
Portfolio turnover rate		77	%		390	%		452	%		507	%		475	%		384	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	42.50		$	35.97		$	36.43		$	37.63		$	34.70		$	32.02
Income (loss) from investment operations:
Net investment income (loss)b		.30			.47			.54			.45			.63			.66
Net gain (loss) on investments (realized and unrealized)		3.46			6.06			.05			2.08			2.87			2.15
Total from investment operations		3.76			6.53			.59			2.53			3.50			2.81
Less distributions from:
Net investment income		—			—			(.53	)		(.87	)		(.57	)		(.13	)
Net realized gains		—			—			(.52	)		(2.86	)		—			—
Total distributions		—			—			(1.05	)		(3.73	)		(.57	)		(.13	)
Net asset value, end of period	$	46.26		$	42.50		$	35.97		$	36.43		$	37.63		$	34.70
Total Returnc		8.85	%		18.15	%		1.45	%		7.75	%		10.38	%		8.78	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,565		$	5,633		$	3,482		$	9,362		$	22,448		$	9,782
Ratios to average net assets:
Net investment income (loss)		1.37	%		1.21	%		1.43	%		1.20	%		1.85	%		1.93	%
Total expenses		1.71	%		1.72	%		1.63	%		1.63	%		1.60	%		1.60	%
Portfolio turnover rate		77	%		390	%		452	%		507	%		475	%		384	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	35.63		$	30.39		$	31.15		$	32.96		$	30.70		$	28.55
Income (loss) from investment operations:
Net investment income (loss)b		.12			.26			.25			.22			.28			.36
Net gain (loss) on investments (realized and unrealized)		2.88			4.98			.04			1.70			2.55			1.92
Total from investment operations		3.00			5.24			.29			1.92			2.83			2.28
Less distributions from:
Net investment income		—			—			(.53	)		(.87	)		(.57	)		(.13	)
Net realized gains		—			—			(.52	)		(2.86	)		—			—
Total distributions		—			—			(1.05	)		(3.73	)		(.57	)		(.13	)
Net asset value, end of period	$	38.63		$	35.63		$	30.39		$	31.15		$	32.96		$	30.70
Total Returnc		8.42	%		17.24	%		0.69	%		6.97	%		9.55	%		7.99	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,861		$	6,489		$	6,526		$	8,270		$	10,438		$	8,417
Ratios to average net assets:
Net investment income (loss)		0.65	%		0.79	%		0.78	%		0.69	%		0.94	%		1.18	%
Total expenses		2.46	%		2.46	%		2.38	%		2.37	%		2.35	%		2.35	%
Portfolio turnover rate		77	%		390	%		452	%		507	%		475	%		384	%

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	40.92		$	34.64		$	35.12		$	36.40		$	33.61		$	31.09
Income (loss) from investment operations:
Net investment income (loss)b		.25			.57			.31			.41			.54			.60
Net gain (loss) on investments (realized and unrealized)		3.37			5.71			.26			2.04			2.82			2.05
Total from investment operations		3.62			6.28			.57			2.45			3.36			2.65
Less distributions from:
Net investment income		—			—			(.53	)		(.87	)		(.57	)		(.13	)
Net realized gains		—			—			(.52	)		(2.86	)		—			—
Total distributions		—			—			(1.05	)		(3.73	)		(.57	)		(.13	)
Net asset value, end of period	$	44.54		$	40.92		$	34.64		$	35.12		$	36.40		$	33.61
Total Return		8.85	%		18.13	%		1.44	%		7.80	%		10.31	%		8.53	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,460		$	6,033		$	810		$	5,379		$	6,448		$	13,546
Ratios to average net assets:
Net investment income (loss)		1.19	%		1.51	%		0.85	%		1.13	%		1.65	%		1.79	%
Total expenses		1.71	%		1.72	%		1.63	%		1.62	%		1.68	%		1.84	%
Portfolio turnover rate		77	%		390	%		452	%		507	%		475	%		384	%

a	Unaudited figures for the period ended September 30, 2019. 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 NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 149

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate Fund (each, a “Fund”). The Trust 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. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2019, the Trust consisted of fifty-two funds.

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

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

At September 30, 2019, Investor Class, A-Class, C-Class and H-Class shares have been issued by the Funds.

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

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

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

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

Significant Accounting Policies

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

150 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

(a) Valuation of Investments

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

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

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

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

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

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

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

(b) Currency Translations

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 151

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

(c) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of September 30, 2019, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

(d) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts (“REITs”) is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(e) Distributions

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

(f) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust based on the respective net assets of each Fund included in the Trust.

(g) Cash

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 1.90% at September 30, 2019.

(h) Indemnifications

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

Note 2 – Investment Advisory Agreement and Other Agreements

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

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

152 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million - $1 billion	0.025%
> $1 billion - $2 billion	0.05%
> $2 billion	0.075%

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, 2019, GFD retained sales charges of $45,539 relating to sales of A-Class shares of the Trust.

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

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS is responsible for maintaining the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets and out of pocket expenses.

Note 3 – Federal Income Tax Information

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 153

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2019, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost, and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Banking Fund	$	18,407,712	$	289,890	$	(9,790	)	$	280,100
Basic Materials Fund		31,377,157		3,915,210		(947,455	)		2,967,755
Biotechnology Fund		108,867,750		73,115,649		(4,076,074	)		69,039,575
Consumer Products Fund		121,260,103		57,441,260		(1,732,786	)		55,708,474
Electronics Fund		56,332,106		2,426,646		(476,212	)		1,950,434
Energy Fund		24,529,179		—		(8,511,789	)		(8,511,789	)
Energy Services Fund		12,491,856		—		(6,155,269	)		(6,155,269	)
Financial Services Fund		29,267,589		3,198,604		(55,527	)		3,143,077
Health Care Fund		35,191,236		342,300		(1,266,765	)		(924,465	)
Internet Fund		45,783,446		—		(3,217,172	)		(3,217,172	)
Leisure Fund		13,677,399		744,837		(321,722	)		423,115
Precious Metals Fund		74,536,528		—		(9,926,846	)		(9,926,846	)
Real Estate Fund		28,999,102		—		(858,059	)		(858,059	)
Retailing Fund		11,284,119		171,979		(338,496	)		(166,517	)
Technology Fund		73,630,922		13,483,651		(761,331	)		12,722,320
Telecommunications Fund		4,530,148		—		(511,780	)		(511,780	)
Transportation Fund		11,545,967		—		(481,484	)		(481,484	)
Utilities Fund		85,670,522		10,455,969		(1,129,233	)		9,326,736

Note 4 – Fair Value Measurement

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

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

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

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

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

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

154 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 5 – Securities Transactions

For the period ended September 30, 2019, 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	$	46,592,096	$	42,174,816
Basic Materials Fund		13,629,163		18,386,316
Biotechnology Fund		26,067,902		59,837,507
Consumer Products Fund		72,898,848		86,115,281
Electronics Fund		115,025,205		85,568,451
Energy Fund		45,048,556		47,991,162
Energy Services Fund		62,601,843		66,844,317
Financial Services Fund		37,423,418		21,592,492
Health Care Fund		39,820,386		84,885,217
Internet Fund		78,897,631		64,127,517
Leisure Fund		37,939,037		38,797,947
Precious Metals Fund		111,996,371		114,755,844
Real Estate Fund		93,277,638		86,349,780
Retailing Fund		19,468,544		44,381,309
Technology Fund		81,372,590		83,911,468
Telecommunications Fund		16,147,215		16,244,953
Transportation Fund		26,568,171		28,734,288
Utilities Fund		81,979,743		119,967,200

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2019, 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	$	3,223,343	$	3,552,617	$	100,848
Basic Materials Fund		1,285,885		2,407,828		92,553
Biotechnology Fund		2,395,507		4,566,354		2,312,716
Consumer Products Fund		10,402,714		5,371,183		(165,184	)
Electronics Fund		18,043,835		8,324,041		672,162
Energy Fund		3,517,008		2,934,529		(32,980	)
Energy Services Fund		4,144,171		2,789,178		(319,948	)
Financial Services Fund		6,191,867		4,254,956		46,262
Health Care Fund		5,849,826		8,836,918		819,879
Internet Fund		13,451,637		9,067,905		355,940
Leisure Fund		7,755,424		4,417,059		118,659
Precious Metals Fund		5,688,198		5,705,702		55,297
Real Estate Fund		7,325,626		5,210,361		221,992
Retailing Fund		4,562,100		3,883,960		353,517
Technology Fund		15,923,661		16,592,216		1,163,183
Telecommunications Fund		2,780,342		1,529,084		95,354
Transportation Fund		1,793,750		1,907,292		70,618
Utilities Fund		4,929,182		4,040,555		297,680

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 155

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 6 – Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report.The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2019, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
JPMorgan Chase & Co.					U.S. Treasury Note
2.35%					1.75%
Due 10/01/19	$	194,737,402	$	194,750,114	06/30/22	$	196,919,400	$	198,632,205
Bank of America Merrill Lynch					U.S. TIP Note
2.28%					1.25%
Due 10/01/19		62,621,053		62,625,019	07/15/20		63,404,852		63,873,490
Barclays Capital					U.S. Treasury Bond
2.00%					3.38%
Due 10/01/19		56,358,948		56,362,079	05/15/44		45,816,100		57,486,205

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

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

156 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2019, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested			Cash Collateral Uninvested		Total Collateral
Basic Materials Fund	$	832,140	$	(832,140	)	$	—	$	838,122		$	—	$	838,122
Biotechnology Fund		7,865,907		(7,865,907	)		—		8,153,730			—		8,153,730
Consumer Products Fund		271,198		(271,198	)		—		280,035			—		280,035
Electronics Fund		503,232		(503,232	)		—		508,500			—		508,500
Energy Fund		143,897		(143,897	)		—		146,550			—		146,550
Energy Services Fund		198,816		(198,816	)		—		204,529			—		204,529
Financial Services Fund		71,457		(71,457	)		—		74,646			—		74,646
Health Care Fund		330,404		(330,404	)		—		346,447			—		346,447
Internet Fund		1,619,523		(1,619,523	)		—		1,645,106			—		1,645,106
Leisure Fund		272,018		(272,018	)		—		278,172			—		278,172
Precious Metals Fund		4,261,000		(4,261,000	)		—		4,575,399			—		4,575,399
Real Estate Fund		270,307		(270,307	)		—		282,724			—		282,724
Retailing Fund		239,280		(236,449	)		2,831		236,449	*		—		236,449
Technology Fund		1,091,367		(1,091,367	)		—		1,102,680			—		1,102,680
Telecommunications Fund		107,418		(107,418	)		—		108,888			—		108,888
Transportation Fund		303,077		(303,077	)		—		310,141			—		310,141
Utilities Fund		1,302,788		(1,302,788	)		—		1,332,644			—		1,332,644

(a)	Actual collateral received by the Fund is generally greater than the amount due to collateralization.
*	Subsequent to September 30, 2019, additional collateral was received.

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

Note 8 – Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 8, 2020. 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 3.41% for the period ended September 30, 2019. On September 30, 2019, the Telecommunications Fund borrowed $15,000 under this agreement. The remaining Funds did not have any borrowings outstanding under this agreement at September 30, 2019.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 157

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The average daily balances borrowed for the period ended September 30, 2019, were as follows:

Fund	Average Daily Balance
Banking Fund	$	2,754
Biotechnology Fund		3,978
Consumer Products Fund		6,546
Electronics Fund		5,995
Energy Fund		5,546
Energy Services Fund		11,322
Financial Services Fund		842
Health Care Fund		4,104
Internet Fund		104
Leisure Fund		885
Precious Metals Fund		781
Real Estate Fund		7,530
Retailing Fund		4,820
Technology Fund		4,224
Telecommunications Fund		1,169
Transportation Fund		120
Utilities Fund		15,486

Note 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-2296 (S.D.N.Y.) (the “MDL Proceeding”).

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

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments.

158 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.”

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intends to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend.

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

Note 10 – Subsequent Events

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 159

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.

Special Meeting of Shareholders — Voting Results

A joint special meeting of shareholders of the Trust was held on October 24, 2019 to elect the following ten nominees to the Board of Trustees of the Trust: Randall C. Barnes, Angela Brock-Kyle, Donald A. Chubb, Jr., Jerry B. Farley, Roman Friedrich III, Thomas F. Lydon, Jr., Ronald A. Nyberg, Sandra G. Sponem, Ronald E. Toupin, Jr. and Amy J. Lee. At the meeting, the following votes were recorded:

Nominee	Shares For	Shares Withheld
Randall C. Barnes	182,013,322	3,038,253
Angela Brock-Kyle	182,013,119	3,038,456
Donald A. Chubb, Jr.	182,008,520	3,043,055
Jerry B. Farley	181,911,245	3,140,330
Roman Friedrich III	181,912,825	3,138,750
Thomas F. Lydon, Jr.	181,907,886	3,143,689
Ronald A. Nyberg	181,907,937	3,143,638
Sandra G. Sponem	181,907,670	3,143,905
Ronald E. Toupin, Jr.	181,906,696	3,144,879
Amy J. Lee	182,013,277	3,038,298

Corey A. Colehour and J. Kenneth Dalton resigned from the Board of Trustees of the Trust effective as of the conclusion of the quarterly meeting of the Board of Trustees of the Trust held on November 11, 2019.

Sector Classification

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

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-PORT and 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 Investment Advisory Agreement

The Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”), each of whom is not an “interested person,” as defined by the Investment Company Act of 1940 (the “1940 Act”), of the Trust (the “Independent Trustees”), attended an in-person meeting held on May 20, 2019 (the “May Meeting”), called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the Advisory Agreement dated March 1, 2012, as amended, between the Trust and Security Investors, LLC (the “Advisor”), pursuant to which the Advisor serves as investment adviser to each series of the Trust (each, a “Fund” and collectively, the “Funds”)(the “Advisory Agreement”). Consistent with its practice, the Board considered information pertaining to the renewal of the Advisory Agreement at an in-person meeting held

160 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

on April 24, 2019 (the “April Meeting” and, together with the May Meeting, the “Meetings”). After careful consideration, the Board unanimously approved, at the May Meeting, the continuance of the Advisory Agreement for an additional one-year term based on the Board’s review of qualitative and quantitative information provided by the Advisor. In the course of its consideration, the Board deemed the materials provided by the Advisor at, and prior to, the Meetings to be instrumental in the Trustees’ deliberations and their process in considering the continuation of the Advisory Agreement. The Board also considered the review it conducted at each Meeting, as augmented by additional teleconference meetings prior to each Meeting, to be integral to its consideration of the continuation of the Advisory Agreement.

Prior to reaching the conclusion to approve the continuation of the Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as they deemed reasonably necessary to evaluate the Advisory Agreement. In addition, the Board received a memorandum from independent legal counsel to the Independent Trustees regarding the Board’s fiduciary responsibilities under state and federal law with respect to the Board’s consideration of the continuation of the Advisory Agreement, and participated in discussions with representatives of the Advisor during which the representatives answered the Independent Trustees’ questions and agreed to provide certain additional information for their consideration. 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 comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). In addition, at the April Meeting, the Board met with representatives of FUSE Research Network (“FUSE”), the independent third-party service provider engaged to prepare the FUSE reports, to review FUSE’s process and methodology for preparing the FUSE reports presented to the Board for its consideration, including in particular, the process for the selection of peer funds. The Independent Trustees carefully evaluated all of the information provided, 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 substantial commitment to the recruitment and retention of high quality personnel; (c) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts; (d) each Fund’s overall fees and operating expenses compared with those of similar funds, and the existence of or potential for the realization of economies of scale; (e) the level of the Advisor’s profitability from its Fund-related operations; (f) the Advisor’s compliance processes and systems; (g) the Advisor’s compliance policies and procedures; (h) the Advisor’s reputation, expertise and resources in the financial markets; (i) Fund performance compared with that of similar funds and/or appropriate benchmarks; (j) other benefits to the Advisor and/or its affiliates from their relationship to the Funds; and (k) the Advisor’s maintenance of operational resources and relationships with third-party service providers, necessary to manage the Funds in a professional manner consistent with the best interests of the Funds and their shareholders. In its deliberations, the Trustees did not identify any particular factor or factors as 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 Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees for each Fund are reasonable in light of, and not so disproportionately large as to bear no reasonable relationship to, the services that it provides to each Fund; and (c) agreed to approve the continuation of the Advisory Agreement for an additional one-year term 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), enterprise and Fund risk management infrastructure and processes, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity program. The Board reviewed the scope of services provided by the Advisor under the Advisory Agreement and noted that there would be no significant differences between the scope of services 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 continuation of the Advisory Agreement would ensure shareholders of the Funds continue to receive high quality services at a cost that is 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. Part of the Board’s review focused on the information presented in the FUSE reports, which provided comparisons of the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 161

OTHER INFORMATION (Unaudited)(concluded)

funds selected by FUSE. In the FUSE 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 opinion that it found the peer groups compiled by FUSE to be appropriate, but acknowledged the existence of certain key features of the Funds that differentiate them from their peer funds (e.g., specific differences in principal investment strategies, index rebalance frequency, and, in certain cases, the Fund’s tradability feature) that should be taken into consideration. With respect to tradability, in particular, the Board considered that non-tradable peer funds incur lower expense ratios than the tradable Funds because the non-tradable peer funds necessarily experience less shareholder activity and lower transaction volumes than the 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. The Board also considered recent fee trends produced, at least in part, by industry-wide pressure on fees, as well as the Trust’s niche registered investment adviser clientele. 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 Advisory Agreement for the last calendar year, noting the asset-based breakpoints implemented by the Advisor in June 2018 for the advisory fee rates for each series of the Trust (with the exception of the Trust’s Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund (the “Alternative Funds”). In its review, the Board considered the direct revenue 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, which the Advisor confirmed was unchanged from the previous year. In its evaluation, the Board also considered the effect of the sale of Guggenheim’s ETF business in April 2018 on the Advisor’s and its affiliates’ profitability for the past year. The Board also considered the challenges currently affecting the sale of mutual funds, including the continued fall-out from the Department of Labor’s failed Fiduciary Rule, and alternative investment funds. 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 asset-based breakpoints in the fee schedule to the Advisory Agreement, effective June 1, 2018, and discussed certain of the Funds’ potential to benefit from the future realization of economies of scale. The Board noted the absence of breakpoints for the Trust’s Alternative Funds and the factors differentiating the Alternative Funds from the Trust’s other Funds. The Board agreed it would continue to monitor the performance of the Alternative Funds to determine whether breakpoints are warranted. The Board reviewed the terms of the breakpoints for the other Funds and noted that many of the Funds had not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board also noted that it intends to monitor the asset levels and thresholds at which the breakpoints are set to determine if they continue to be appropriate in the future.

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 derived by the Advisor and its affiliates as a result of their relationship with the Funds, including any intangible benefits to the Advisor. In particular, the Board considered the nature, extent, quality, and cost of certain distribution and shareholder services performed by the Advisor’s affiliate, Guggenheim Funds Distributors, LLC, under separate distribution agreements, Distribution Plans and Distribution and Shareholder Services Plans 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 affiliate’s 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, unanimously concluded that the terms of the Advisory Agreement were reasonable, and that approval of the continuation of the Advisory Agreement for an additional one-year term was in the best interests of each Fund and its shareholders.

162 | 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 Trustees	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 Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee (November 2019-present).	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	158	Current: Trustee, Purpose Investments Funds (2013-Present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).
Angela Brock-Kyle (1959)	Trustee and Member of the Audit Committee (2016-present); and Member of the Governance and Nominating Committee (2017-present).	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	157	None.
Donald A. Chubb, Jr. (1946)	Trustee (November 2019-present).	Current: Retired. Former: Business broker and manager of commercial real estate, Griffith & Blair, Inc. (1997-2017).	157	Former: Midland Care, Inc. (2011-2016).
Jerry B. Farley (1946)	Trustee (November 2019-present).	Current: President, Washburn University (1997-present).	157	Current: CoreFirst Bank & Trust (2000-Present). Former: Westar Energy, Inc. (2004-2018).
Roman Friedrich III (1946)	Trustee (November 2019-present).	Current: Founder and Managing Partner, Roman Friedrich & Company (1998-present).	157	Former: Zincore Metals, Inc. (2009-January 2019).
Thomas F. Lydon, Jr. (1960)	Trustee, Member of the Audit Committee (2005-present); and Chairman and Member of the Governance and Nominating Committee (2017-present).	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	157	Current: US Global Investors (GROW) (1995-present); and Harvest Volatility Edge Trust (3) (2017-present).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 163

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

Name, Address* and Year of Birth of Trustees	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 Trustees***
INDEPENDENT TRUSTEES - concluded
Ronald A. Nyberg (1953)	Trustee (November 2019-present).	Current: Partner, Momkus LLC (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	158	Current: PPM Funds (9) (2018 - present); Edward-Elmhurst Healthcare System (2012-present); Western Asset Inflation-Linked Opportunities & Income Fund (2004-present); Western Asset Inflation-Linked Income Fund (2003-present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).
Sandra G. Sponem (1958)	Trustee and Member of the Audit Committee (2016-present); Member of the Governance and Nominating Committee (2017-present); Chairwoman (January 2019-present); and Chairwoman of Audit Committee (November 2019-present).	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-2017).	157	Current: SPDR Series Trust (78) (2018-present); SPDR Index Shares Funds (31) (2018-present); SSGA Active Trust (12) (2018-present); and SSGA Master Trust (1) (2018-present).
Ronald E. Toupin, Jr. (1958)	Trustee (November 2019-present).	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	157	Current: Western Asset Inflation-Linked Opportunities & Income Fund (2004-present); Western Asset Inflation-Linked Income Fund (2003-present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).

164 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth of Trustees	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 Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer (November 2019-present).	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer (2017- 2018); President, certain other funds in the Fund Complex (2017-November 2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	157	None.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 165

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
Brian E. Binder (1972)	President and Chief Executive Officer (November 2019-present)	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President and Chief Executive Officer, Guggenheim Funds Investment Advisors, LLC and Security Investors, LLC (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary (2017-present)	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).
Michael P. Megaris (1984)	Assistant Secretary (2018-present)	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present)	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer (2017-present)	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Director, Guggenheim Investments (2013-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).

166 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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
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).
William Rehder (1967)	Assistant Vice President (2018-present)	Current: Managing Director, Guggenheim Investments (2002-present).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: Chief Financial Officer, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and Chief Compliance Officer, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer (2017-present)	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014-2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	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.
***	Certain 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.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.
*****	Each Trustee serves an indefinite term, until his or her successor is elected and qualified.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 167

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

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

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

Our Commitment to You

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

The Information We Collect About You

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

How We Handle Your Personal Information

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

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

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

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

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

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

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

168 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

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

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

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

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

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

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

Opt-Out Provisions and Your Data Choices

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 169

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

How We Protect Privacy Online

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

How We Safeguard Your Personal Information and Data Retention

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

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

International Visitors

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

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

We’ll Keep You Informed

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

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

170 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

9.30.2019

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

Beginning on January 1, 2021, paper copies of the Funds’ annual and semi-annual shareholder reports may no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a fund electronically by calling 800.820.0888, going to GuggenheimInvestments.com/myaccount, or by contacting your financial intermediary.

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

GuggenheimInvestments.com RBENF-SEMI-0919x0320

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
NOVA FUND	12
S&P 500® FUND	27
INVERSE S&P 500® STRATEGY FUND	39
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND	48
INVERSE NASDAQ-100® STRATEGY FUND	57
MID-CAP 1.5X STRATEGY FUND	67
INVERSE MID-CAP STRATEGY FUND	79
RUSSELL 2000® 1.5x STRATEGY FUND	86
RUSSELL 2000® FUND	94
INVERSE RUSSELL 2000® STRATEGY FUND	101
DOW JONES INDUSTRIAL AVERAGE® FUND	108
GOVERNMENT LONG BOND 1.2X STRATEGY FUND	116
INVERSE GOVERNMENT LONG BOND STRATEGY FUND	125
HIGH YIELD STRATEGY FUND	135
INVERSE HIGH YIELD STRATEGY FUND	144
U.S. GOVERNMENT MONEY MARKET FUND	151
NOTES TO FINANCIAL STATEMENTS	157
OTHER INFORMATION	175
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	178
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	183

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2019

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for a selection of our funds (the “Fund” or “Funds”). This report covers performance for the six-month period ended September 30, 2019.

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,

Security Investors, LLC
October 31, 2019

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

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

Inverse and leveraged Funds are not suitable for all investors. ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments. ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● Inverse Funds involve certain risks, which include increased volatility due to the Funds’ possible use of short sales of securities and derivatives, such as options and futures. ● The Funds’ use of derivatives, such as futures, options, and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. ● Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a Fund from correlating with the monthly, quarterly, annual, or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a Fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged and inverse Funds’ holdings consistent with their strategies, as frequently as daily. ● For more on these and other risks, please read the prospectus.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

September 30, 2019

The Fixed Income Funds may not be suitable for all investors. ● Fixed income investments are subject to credit, liquidity, interest rate, and, depending on the instrument, counterparty risk. These risks may be increased to the extent fixed income investments are concentrated in any one issuer, industry, region, or country. The market value of fixed income investments generally will fluctuate with, among other things, the financial condition of the obligors on the underlying debt obligations, general economic conditions, the condition of certain financial markets, political events, developments or trends in any particular industry, and changes in prevailing interest rates. In general, any interest rate increases can cause the price of a debt security to decrease and vice versa.

The High Yield Strategy Fund and Inverse High Yield Strategy Fund may not be suitable for all investors. ● The use of derivatives such as futures, options and swap agreements will expose the Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● A highly liquid secondary market may not exist for the credit default swaps the Funds invest in, and there can be no assurance that a highly liquid secondary market will develop. ● The Funds’ market value will change in response to interest rate changes and market conditions among other factors. ● You may have a gain or loss when you sell your shares. ● In general, bond prices rise when interest rates fall, and vice versa. The Funds’ exposure to the high yield bond market may subject the Funds to greater volatility because (i) the Funds will be affected by the ability of high yield security issuers’ ability to make principal and interest payments and (ii) the prices of derivatives linked to high yield bonds may fluctuate unpredictably and not necessarily in relation to interest rates. ● It is important to note that the Funds are not guaranteed by the U.S. government. The Funds are subject to active trading risks that may increase volatility and impact their ability to achieve their investment objectives. ● Investing in the Inverse High Yield Strategy Fund involves certain risks, which include volatility due to the Fund’s possible use of short sales of security and derivatives such as options and futures.

Monthly leveraged funds are not suitable for all investors. ● These funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking monthly leveraged investment results, and (c) intend to actively monitor and manage their investments. ● The more a fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The funds’ use of derivatives, such as futures, options, and swap agreements, may expose the funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Monthly leveraged funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a monthly basis. Because monthly leveraged funds seek to track the performance of their benchmark on a monthly basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the quarterly, annual or other period performance of its benchmark. Due to the compounding of monthly returns, leveraged funds’ returns over periods other than one calendar month will likely differ in amount and possibly direction from the benchmark return for the same period. For those funds that consistently apply leverage, the value of the funds’ shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. Monthly leveraged funds rebalance their portfolios on a monthly basis on the last day of each calendar month, increasing exposure in response to that month’s gains or reducing exposure in response to that month’s losses. ● Throughout the month, the amount of leverage that a monthly leveraged fund provides is allowed to float. Purchasing monthly leveraged funds on any day other than the last day of each calendar month will likely mean that the monthly leveraged fund’s actual leverage is different from its monthly leverage target. Investors should monitor their monthly leveraged funds’ holdings consistent with their strategies, as frequently as daily. ● For more on these and other risks, please read the monthly leveraged funds’ prospectus.

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2019

Economic data has been mixed over the past few months. On the positive side, we saw a pickup in the housing market as measured by housing starts and home sales, which could be a delayed response to lower mortgage rates. Industrial production had the strongest month-over-month gain in a year, partially boosted by an increase in oil production in Hurricane Barry’s wake. The unemployment rate fell to a 50-year low of 3.5% in September 2019, despite a continued moderation in payroll gains.

On the negative side, the Institute for Supply Management (“ISM”) Manufacturing Index plunged to the weakest reading since June 2009. The ISM Non-Manufacturing Index also came in well below expectations, the lowest since August 2016. Within both the manufacturing and non-manufacturing ISM indexes, analysts look at the employment component of the survey for an early read on other labor market indicators. Here we find more cause for concern: The non-manufacturing survey’s employment component is now barely above 50 while the manufacturing employment sub-index stands at 46.3, well into contraction territory. Combined, the outlook for output and hiring has dimmed, signaling trouble ahead for consumers.

Retail sales have been steady, but Commerce Department data showed that total consumer spending on goods and services increased only 0.1% month-over-month in August 2019, the smallest gain in six months. It is hard to identify the primary reason why consumers may already be turning more conservative on spending. Income growth looks steady, the equity market is higher year-to-date, and rates are lower, all of which should be boosting consumer confidence. Sentiment surveys, however, show that fewer consumers believe now is a good time to buy homes, vehicles, and household durables, and headline consumer confidence measures have ticked down. We believe trade policy and political concerns are weighing on sentiment, and these headwinds are set to ramp up further. Additional U.S. tariffs on China are due to take effect on December 15, 2019 and the U.S. House of Representatives is pressing forward with its impeachment inquiry into President Trump.

Guggenheim’s dashboard of U.S. recession indicators continues to point to a recession beginning as early as the first half of 2020, and we think the economic data is corroborating this view. Two of the more notable indicators pointing to high recession risk are the three-month/10-year U.S. Treasury yield curve, which has been inverted for 16 consecutive weeks through period end, and the Leading Economic Indicators Index which has slowed from a year-over-year growth rate of 6.6% in September 2018 to 1.1% as of August 2019. The indicators Guggenheim tracks as part of our recession probability model indicate a nearly 50% chance that a recession will come before mid-2020, and a 70% chance that it will arrive by mid-2021.

Over the period, the U.S. Treasury curve continued its overall flattening trend, as the difference between the two-year U.S. Treasury and 10-year U.S. Treasury narrowed to 5 basis points. Equity markets remained volatile, buoyed by a 25 basis point cut in July and September 2019 by the U.S. Federal Reserve (the “Fed”) and relatively strong U.S. economic data, but weighed down by trade war uncertainty and fears of a global slowdown.

With downside risks growing, markets have become more sensitive to the Fed’s communications about the future stance of monetary policy. Despite the two rate cuts, Fed policymakers are deeply divided. It is still unclear whether the Fed will deliver the aggressive and preemptive policy action that would prolong the current expansion.

As it relates to risk-taking, we are not confident that the Fed would succeed in easing credit conditions if conditions were to tighten materially. The Fed may act too late, or its actions may have little impact given that low rates this year have largely failed to stimulate growth. With credit spreads still relatively tight on a historical basis, we believe it is prudent to remain up in quality as we await better opportunities to deploy capital in riskier credit sectors in the coming downturn.

For the six-month period ended September 30, 2019, the Standard & Poor’s 500^® (“S&P 500”) Index^* returned 6.08%. The MSCI Europe-Australasia-Far East (“EAFE”) Index^* returned 2.93%. The return of the MSCI Emerging Markets Index^* was -3.40%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index^* posted a 5.42% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index^* returned 3.87%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index^* was 1.20% 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.

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2019

^*Index Definitions:

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

Bloomberg Barclays U.S. Long Treasury Index includes all publicly issued, U.S. Treasury securities that have a remaining maturity of 10 or more years, are rated investment grade, and have $250 million or more of outstanding face value. In addition, the securities must be denominated in U.S. dollars and must be fixed rate and nonconvertible. The Long U.S. Treasury Index is market capitalization weighted and the securities in the index are updated on the last business day of each month.

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

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

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

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

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

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

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

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

An Example of Compounding

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

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

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

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

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

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

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

6 | THE RYDEX FUNDS 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, 2019 and ending September 30, 2019.

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 | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Nova Fund
Investor Class	1.35%	7.33%	$ 1,000.00	$ 1,073.30	$ 7.02
A-Class	1.60%	7.21%	1,000.00	1,072.10	8.31
C-Class	2.35%	6.79%	1,000.00	1,067.90	12.18
H-Class	1.60%	7.22%	1,000.00	1,072.20	8.31
S&P 500® Fund
A-Class	1.67%	5.16%	1,000.00	1,051.60	8.59
C-Class	2.42%	4.77%	1,000.00	1,047.70	12.42
H-Class	1.67%	5.16%	1,000.00	1,051.60	8.59
Inverse S&P 500® Strategy Fund
Investor Class	1.49%	(4.86%)	1,000.00	951.40	7.29
A-Class	1.75%	(4.98%)	1,000.00	950.20	8.56
C-Class	2.49%	(5.33%)	1,000.00	946.70	12.15
H-Class	1.74%	(4.99%)	1,000.00	950.10	8.51
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
A-Class	1.33%	7.21%	1,000.00	1,072.10	6.91
C-Class	2.08%	6.81%	1,000.00	1,068.10	10.78
H-Class	1.34%	7.17%	1,000.00	1,071.70	6.96
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.50%	(4.77%)	1,000.00	952.30	7.34
A-Class	1.74%	(4.89%)	1,000.00	951.10	8.51
C-Class	2.50%	(5.24%)	1,000.00	947.60	12.21
H-Class	1.75%	(4.88%)	1,000.00	951.20	8.56
Mid-Cap 1.5x Strategy Fund
A-Class	1.71%	2.29%	1,000.00	1,022.90	8.67
C-Class	2.46%	1.90%	1,000.00	1,019.00	12.45
H-Class	1.71%	2.28%	1,000.00	1,022.80	8.67
Inverse Mid-Cap Strategy Fund
A-Class	1.69%	(2.38%)	1,000.00	976.20	8.37
C-Class	2.17%	(3.35%)	1,000.00	966.50	10.70
H-Class	1.69%	(2.43%)	1,000.00	975.70	8.37
Russell 2000® 1.5x Strategy Fund
A-Class	1.75%	(2.39%)	1,000.00	976.10	8.67
C-Class	2.50%	(2.76%)	1,000.00	972.40	12.36
H-Class	1.75%	(2.40%)	1,000.00	976.00	8.67
Russell 2000® Fund
A-Class	1.71%	(1.14%)	1,000.00	988.60	8.52
C-Class	2.46%	(1.51%)	1,000.00	984.90	12.24
H-Class	1.71%	(1.12%)	1,000.00	988.80	8.53
Inverse Russell 2000® Strategy Fund
A-Class	1.76%	0.29%	1,000.00	1,002.90	8.84
C-Class	2.52%	(0.05%)	1,000.00	999.50	12.63
H-Class	1.77%	0.29%	1,000.00	1,002.90	8.89

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Dow Jones Industrial Average® Fund
A-Class	1.61%	4.20%	$ 1,000.00	$ 1,042.00	$ 8.24
C-Class	2.36%	3.81%	1,000.00	1,038.10	12.06
H-Class	1.61%	4.19%	1,000.00	1,041.90	8.24
Government Long Bond 1.2x Strategy Fund
Investor Class	1.04%	19.05%	1,000.00	1,190.50	5.71
A-Class	1.29%	18.91%	1,000.00	1,189.10	7.08
C-Class	2.04%	18.47%	1,000.00	1,184.70	11.17
H-Class	1.29%	18.94%	1,000.00	1,189.40	7.08
Inverse Government Long Bond Strategy Fund
Investor Class	2.86%	(13.63%)	1,000.00	863.70	13.36
A-Class	3.13%	(13.71%)	1,000.00	862.90	14.62
C-Class	3.89%	(14.06%)	1,000.00	859.40	18.13
H-Class	3.30%	(13.74%)	1,000.00	862.60	15.41
High Yield Strategy Fund
A-Class	1.60%	4.61%	1,000.00	1,046.10	8.21
C-Class	2.34%	4.26%	1,000.00	1,042.60	11.98
H-Class	1.60%	4.66%	1,000.00	1,046.60	8.21
Inverse High Yield Strategy Fund
A-Class	1.59%	(3.89%)	1,000.00	961.10	7.82
C-Class	2.33%	(4.48%)	1,000.00	955.20	11.42
H-Class	1.59%	(4.15%)	1,000.00	958.50	7.81
U.S. Government Money Market Fund
Money Market Class	1.05%	0.67%	1,000.00	1,006.70	5.28

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund
Investor Class	1.35%	5.00%	$ 1,000.00	$ 1,018.30	$ 6.83
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
S&P 500® Fund
A-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
C-Class	2.42%	5.00%	1,000.00	1,012.94	12.21
H-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
Inverse S&P 500® Strategy Fund
Investor Class	1.49%	5.00%	1,000.00	1,017.60	7.54
A-Class	1.75%	5.00%	1,000.00	1,016.29	8.85
C-Class	2.49%	5.00%	1,000.00	1,012.58	12.56
H-Class	1.74%	5.00%	1,000.00	1,016.34	8.80
Monthly Rebalance NASDAQ-100® 2x Strategy Fund
A-Class	1.33%	5.00%	1,000.00	1,018.40	6.73
C-Class	2.08%	5.00%	1,000.00	1,014.64	10.50
H-Class	1.34%	5.00%	1,000.00	1,018.35	6.78
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.50%	5.00%	1,000.00	1,017.55	7.59
A-Class	1.74%	5.00%	1,000.00	1,016.34	8.80
C-Class	2.50%	5.00%	1,000.00	1,012.53	12.61
H-Class	1.75%	5.00%	1,000.00	1,016.29	8.85
Mid-Cap 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
Inverse Mid-Cap Strategy Fund
A-Class	1.69%	5.00%	1,000.00	1,016.60	8.54
C-Class	2.17%	5.00%	1,000.00	1,014.19	10.96
H-Class	1.69%	5.00%	1,000.00	1,016.60	8.54
Russell 2000® 1.5x Strategy Fund
A-Class	1.75%	5.00%	1,000.00	1,016.29	8.85
C-Class	2.50%	5.00%	1,000.00	1,012.53	12.61
H-Class	1.75%	5.00%	1,000.00	1,016.29	8.85
Russell 2000® 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
Inverse Russell 2000® Strategy Fund
A-Class	1.76%	5.00%	1,000.00	1,016.24	8.90
C-Class	2.52%	5.00%	1,000.00	1,012.43	12.71
H-Class	1.77%	5.00%	1,000.00	1,016.19	8.95

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Dow Jones Industrial Average® 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
Government Long Bond 1.2x Strategy Fund
Investor Class	1.04%	5.00%	1,000.00	1,019.85	5.27
A-Class	1.29%	5.00%	1,000.00	1,018.60	6.53
C-Class	2.04%	5.00%	1,000.00	1,014.84	10.30
H-Class	1.29%	5.00%	1,000.00	1,018.60	6.53
Inverse Government Long Bond Strategy Fund
Investor Class	2.86%	5.00%	1,000.00	1,010.73	14.42
A-Class	3.13%	5.00%	1,000.00	1,009.38	15.77
C-Class	3.89%	5.00%	1,000.00	1,005.57	19.56
H-Class	3.30%	5.00%	1,000.00	1,008.52	16.62
High Yield Strategy Fund
A-Class	1.60%	5.00%	1,000.00	1,017.05	8.09
C-Class	2.34%	5.00%	1,000.00	1,013.34	11.81
H-Class	1.60%	5.00%	1,000.00	1,017.05	8.09
Inverse High Yield Strategy Fund
A-Class	1.59%	5.00%	1,000.00	1,017.10	8.04
C-Class	2.33%	5.00%	1,000.00	1,013.39	11.76
H-Class	1.59%	5.00%	1,000.00	1,017.10	8.04
U.S. Government Money Market Fund
Money Market Class	1.05%	5.00%	1,000.00	1,019.80	5.32

1	This ratio represents annualized Net Expenses, which include interest expense related to securities sold short. Excluding short interest expense, the operating ratio of the Inverse Government Long Bond Strategy Fund would be 1.49%, 1.74%, 2.49%, and 1.74% for Investor Class, A-Class, C-Class, and H-Class, respectively. Excludes expenses of the underlying funds in which the Funds invest, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2019 to September 30, 2019.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
Investor Class	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 II	3.9%
Guggenheim Ultra Short Duration Fund — Institutional Class	3.1%
Microsoft Corp.	3.0%
Apple, Inc.	2.6%
Guggenheim Strategy Fund III	2.2%
Amazon.com, Inc.	2.0%
Facebook, Inc. — Class A	1.2%
Berkshire Hathaway, Inc. — Class B	1.1%
JPMorgan Chase & Co.	1.1%
Alphabet, Inc. — Class C	1.0%
Top Ten Total	21.2%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

12 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	7.33%	2.31%	13.24%	17.33%
A-Class Shares	7.21%	2.14%	12.98%	17.04%
A-Class Shares with sales charge‡	2.12%	(2.71%)	11.88%	16.47%
C-Class Shares	6.79%	1.34%	12.15%	16.18%
C-Class Shares with CDSC§	5.79%	0.34%	12.15%	16.18%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

	6 Month†	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	7.22%	2.10%	13.00%	12.24%
S&P 500 Index	6.08%	4.25%	10.84%	10.34%

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 13

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
NOVA FUND

	Shares		Value
COMMON STOCKS† - 68.5%
Consumer, Non-cyclical - 14.9%
Johnson & Johnson		23,131	$	2,992,689
Procter & Gamble Co.		21,935		2,728,275
Merck & Company, Inc.		22,441		1,889,083
Coca-Cola Co.		33,730		1,836,261
UnitedHealth Group, Inc.		8,306		1,805,060
Pfizer, Inc.		48,478		1,741,815
PepsiCo, Inc.		12,254		1,680,023
Abbott Laboratories		15,491		1,296,132
Medtronic plc		11,759		1,277,263
PayPal Holdings, Inc.*		10,313		1,068,324
Philip Morris International, Inc.		13,636		1,035,381
Thermo Fisher Scientific, Inc.		3,510		1,022,358
Amgen, Inc.		5,256		1,017,088
AbbVie, Inc.		12,958		981,180
Eli Lilly & Co.		7,446		832,686
Danaher Corp.		5,596		808,230
Bristol-Myers Squibb Co.		14,337		727,029
CVS Health Corp.		11,398		718,872
Gilead Sciences, Inc.		11,100		703,518
Mondelez International, Inc. — Class A		12,640		699,245
Altria Group, Inc.		16,373		669,656
Celgene Corp.*		6,212		616,852
Automatic Data Processing, Inc.		3,803		613,880
Stryker Corp.		2,812		608,236
Becton Dickinson and Co.		2,366		598,503
Colgate-Palmolive Co.		7,519		552,722
Intuitive Surgical, Inc.*		1,010		545,329
Anthem, Inc.		2,242		538,304
S&P Global, Inc.		2,159		528,912
Zoetis, Inc.		4,185		521,409
Cigna Corp.		3,309		502,273
Boston Scientific Corp.*		12,209		496,784
Allergan plc		2,875		483,834
Kimberly-Clark Corp.		3,016		428,423
Global Payments, Inc.		2,629		418,011
Edwards Lifesciences Corp.*		1,823		400,896
Illumina, Inc.*		1,288		391,835
Baxter International, Inc.		4,475		391,428
Estee Lauder Companies, Inc. — Class A		1,938		385,565
Vertex Pharmaceuticals, Inc.*		2,252		381,534
Biogen, Inc.*		1,617		376,470
Sysco Corp.		4,498		357,141
Constellation Brands, Inc. — Class A		1,466		303,873
Humana, Inc.		1,184		302,713
Moody’s Corp.		1,426		292,088
General Mills, Inc.		5,288		291,475
HCA Healthcare, Inc.		2,331		280,699
Zimmer Biomet Holdings, Inc.		1,799		246,949
IQVIA Holdings, Inc.*		1,597		238,560
IHS Markit Ltd.*		3,515		235,083
Verisk Analytics, Inc. — Class A		1,432		226,456
Tyson Foods, Inc. — Class A		2,583		222,500
McKesson Corp.		1,620		221,389
FleetCor Technologies, Inc.*		758		217,379
IDEXX Laboratories, Inc.*		755		205,307
Hershey Co.		1,305		202,262
Archer-Daniels-Midland Co.		4,882		200,504
Monster Beverage Corp.*		3,390		196,823
Cintas Corp.		728		195,177
Regeneron Pharmaceuticals, Inc.*		700		194,180
Alexion Pharmaceuticals, Inc.*		1,965		192,452
Corteva, Inc.		6,563		183,764
Kroger Co.		7,001		180,486
ResMed, Inc.		1,258		169,968
McCormick & Company, Inc.		1,078		168,491
Clorox Co.		1,101		167,209
Church & Dwight Company, Inc.		2,166		162,970
Centene Corp.*		3,625		156,818
Kraft Heinz Co.		5,453		152,329
Equifax, Inc.		1,059		148,970
Laboratory Corporation of America Holdings*		856		143,808
Kellogg Co.		2,179		140,219
Teleflex, Inc.		405		137,599
Conagra Brands, Inc.		4,265		130,850
Cooper Companies, Inc.		434		128,898
Quest Diagnostics, Inc.		1,180		126,295
Cardinal Health, Inc.		2,613		123,308
Hologic, Inc.*		2,343		118,298
Incyte Corp.*		1,565		116,170
Align Technology, Inc.*		637		115,246
WellCare Health Plans, Inc.*		441		114,294
Gartner, Inc.*		790		112,962
JM Smucker Co.		999		109,910
AmerisourceBergen Corp. — Class A		1,333		109,746
MarketAxess Holdings, Inc.		331		108,402
Hormel Foods Corp.		2,433		106,395
Universal Health Services, Inc. — Class B		712		105,910
Dentsply Sirona, Inc.		1,964		104,701
Brown-Forman Corp. — Class B		1,595		100,134
Varian Medical Systems, Inc.*		798		95,034
Molson Coors Brewing Co. — Class B		1,646		94,645
Lamb Weston Holdings, Inc.		1,277		92,863
Mylan N.V.*		4,521		89,425
United Rentals, Inc.*		676		84,257
Avery Dennison Corp.		738		83,814
Henry Schein, Inc.*		1,299		82,487
ABIOMED, Inc.*		397		70,622
Campbell Soup Co.		1,478		69,348
Perrigo Company plc		1,192		66,621
Nielsen Holdings plc		3,117		66,236
Robert Half International, Inc.		1,030		57,330
DaVita, Inc.*		848		48,395
Quanta Services, Inc.		1,246		47,099
Rollins, Inc.		1,234		42,042
H&R Block, Inc.		1,759		41,548
Nektar Therapeutics*		1,536		27,978
Coty, Inc. — Class A		2,578		27,095
Total Consumer, Non-cyclical				47,065,367

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
NOVA FUND

	Shares		Value
Financial - 12.3%
Berkshire Hathaway, Inc. — Class B*		17,186	$	3,575,032
JPMorgan Chase & Co.		28,025		3,298,262
Visa, Inc. — Class A		15,136		2,603,543
Bank of America Corp.		73,425		2,141,807
Mastercard, Inc. — Class A		7,825		2,125,035
Wells Fargo & Co.		35,142		1,772,562
Citigroup, Inc.		19,800		1,367,784
American Tower Corp. — Class A REIT		3,880		857,984
American Express Co.		5,963		705,304
U.S. Bancorp		12,569		695,568
CME Group, Inc. — Class A		3,138		663,185
Chubb Ltd.		3,994		644,791
Goldman Sachs Group, Inc.		2,836		587,704
PNC Financial Services Group, Inc.		3,902		546,904
Crown Castle International Corp. REIT		3,644		506,553
Prologis, Inc. REIT		5,532		471,437
Morgan Stanley		11,009		469,754
BlackRock, Inc. — Class A		1,030		459,009
Intercontinental Exchange, Inc.		4,912		453,230
Marsh & McLennan Companies, Inc.		4,437		443,922
Equinix, Inc. REIT		743		428,562
Charles Schwab Corp.		10,197		426,541
American International Group, Inc.		7,624		424,657
Simon Property Group, Inc. REIT		2,699		420,099
Aon plc		2,066		399,916
Progressive Corp.		5,124		395,829
Capital One Financial Corp.		4,122		375,020
BB&T Corp.		6,715		358,380
Bank of New York Mellon Corp.		7,519		339,934
Aflac, Inc.		6,488		339,452
Travelers Companies, Inc.		2,282		339,310
MetLife, Inc.		6,976		328,988
Public Storage REIT		1,316		322,775
Welltower, Inc. REIT		3,552		321,989
Prudential Financial, Inc.		3,523		316,894
Allstate Corp.		2,885		313,542
SunTrust Banks, Inc.		3,891		267,701
AvalonBay Communities, Inc. REIT		1,224		263,564
Equity Residential REIT		3,055		263,524
SBA Communications Corp. REIT		991		238,980
Ventas, Inc. REIT		3,266		238,516
Digital Realty Trust, Inc. REIT		1,826		237,033
T. Rowe Price Group, Inc.		2,064		235,812
Discover Financial Services		2,789		226,160
Willis Towers Watson plc		1,131		218,249
Realty Income Corp. REIT		2,789		213,861
State Street Corp.		3,266		193,315
Hartford Financial Services Group, Inc.		3,169		192,073
Essex Property Trust, Inc. REIT		576		188,150
M&T Bank Corp.		1,171		184,983
Synchrony Financial		5,350		182,382
Weyerhaeuser Co. REIT		6,529		180,853
Northern Trust Corp.		1,883		175,722
Fifth Third Bancorp		6,402		175,287
Ameriprise Financial, Inc.		1,147		168,724
Boston Properties, Inc. REIT		1,260		163,372
KeyCorp		8,793		156,867
CBRE Group, Inc. — Class A*		2,948		156,273
Cincinnati Financial Corp.		1,331		155,288
HCP, Inc. REIT		4,304		153,352
Alexandria Real Estate Equities, Inc. REIT		994		153,116
Arthur J Gallagher & Co.		1,631		146,089
First Republic Bank		1,474		142,536
Citizens Financial Group, Inc.		3,919		138,615
Regions Financial Corp.		8,745		138,346
Extra Space Storage, Inc. REIT		1,126		131,539
Mid-America Apartment Communities, Inc. REIT		999		129,880
Principal Financial Group, Inc.		2,272		129,822
Huntington Bancshares, Inc.		9,096		129,800
UDR, Inc. REIT		2,567		124,448
Loews Corp.		2,279		117,323
Cboe Global Markets, Inc.		976		112,152
Host Hotels & Resorts, Inc. REIT		6,397		110,604
Duke Realty Corp. REIT		3,167		107,583
Lincoln National Corp.		1,755		105,861
Regency Centers Corp. REIT		1,468		102,011
Nasdaq, Inc.		1,010		100,343
Everest Re Group Ltd.		357		94,994
SVB Financial Group*		452		94,445
E*TRADE Financial Corp.		2,102		91,836
Raymond James Financial, Inc.		1,083		89,304
Vornado Realty Trust REIT		1,388		88,374
Comerica, Inc.		1,309		86,381
Western Union Co.		3,715		86,077
Globe Life, Inc.		880		84,269
Federal Realty Investment Trust REIT		610		83,045
Iron Mountain, Inc. REIT		2,516		81,493
Kimco Realty Corp. REIT		3,699		77,235
Franklin Resources, Inc.		2,472		71,342
Zions Bancorp North America		1,551		69,051
Apartment Investment & Management Co. — Class A REIT		1,305		68,043
Assurant, Inc.		535		67,314
SL Green Realty Corp. REIT		722		59,024
Invesco Ltd.		3,376		57,189
People’s United Financial, Inc.		3,494		54,629
Unum Group		1,829		54,358
Alliance Data Systems Corp.		359		45,999
Affiliated Managers Group, Inc.		443		36,924
Macerich Co. REIT1		966		30,516
Total Financial				38,763,209
Technology - 11.9%
Microsoft Corp.		66,921		9,304,027
Apple, Inc.		37,233		8,339,075
Intel Corp.		38,827		2,000,755
Adobe, Inc.*		4,255		1,175,444
salesforce.com, Inc.*		7,687		1,141,058
International Business Machines Corp.		7,764		1,129,041
Accenture plc — Class A		5,584		1,074,082
Oracle Corp.		19,297		1,061,914

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
NOVA FUND

	Shares		Value
Texas Instruments, Inc.		8,183	$	1,057,571
Broadcom, Inc.		3,489		963,208
NVIDIA Corp.		5,338		929,186
QUALCOMM, Inc.		10,655		812,764
Fidelity National Information Services, Inc.		5,377		713,851
Intuit, Inc.		2,279		606,077
Fiserv, Inc.*		5,003		518,261
Micron Technology, Inc.*		9,674		414,531
Applied Materials, Inc.		8,096		403,990
Analog Devices, Inc.		3,237		361,670
Activision Blizzard, Inc.		6,723		355,781
Lam Research Corp.		1,267		292,816
Cognizant Technology Solutions Corp. — Class A		4,840		291,683
Autodesk, Inc.*		1,925		284,323
Advanced Micro Devices, Inc.*		9,514		275,811
Electronic Arts, Inc.*		2,583		252,669
HP, Inc.		12,988		245,733
Paychex, Inc.		2,803		232,004
KLA Corp.		1,395		222,433
Xilinx, Inc.		2,214		212,323
Microchip Technology, Inc.		2,086		193,810
Cerner Corp.		2,790		190,194
Synopsys, Inc.*		1,317		180,758
Hewlett Packard Enterprise Co.		11,443		173,590
ANSYS, Inc.*		737		163,142
Cadence Design Systems, Inc.*		2,455		162,226
MSCI, Inc. — Class A		742		161,571
Western Digital Corp.		2,594		154,706
Maxim Integrated Products, Inc.		2,377		137,652
Akamai Technologies, Inc.*		1,446		132,135
Broadridge Financial Solutions, Inc.		1,002		124,679
Take-Two Interactive Software, Inc.*		992		124,337
Skyworks Solutions, Inc.		1,505		119,271
Seagate Technology plc		2,075		111,614
NetApp, Inc.		2,085		109,483
Citrix Systems, Inc.		1,078		104,049
Leidos Holdings, Inc.		1,185		101,768
Jack Henry & Associates, Inc.		675		98,530
Fortinet, Inc.*		1,243		95,413
Qorvo, Inc.*		1,032		76,513
DXC Technology Co.		2,296		67,732
Xerox Holdings Corp.		1,668		49,890
IPG Photonics Corp.*		312		42,307
Total Technology				37,547,451
Communications - 10.2%
Amazon.com, Inc.*		3,642		6,322,184
Facebook, Inc. — Class A*		21,085		3,754,817
Alphabet, Inc. — Class C*		2,649		3,229,131
Alphabet, Inc. — Class A*		2,625		3,205,492
AT&T, Inc.		64,043		2,423,387
Verizon Communications, Inc.		36,251		2,188,110
Walt Disney Co.		15,788		2,057,492
Cisco Systems, Inc.		37,209		1,838,497
Comcast Corp. — Class A		39,752		1,792,020
Netflix, Inc.*		3,837		1,026,858
Booking Holdings, Inc.*		373		732,054
Charter Communications, Inc. — Class A*		1,416		583,562
Twitter, Inc.*		6,775		279,130
eBay, Inc.		6,910		269,352
Motorola Solutions, Inc.		1,450		247,094
T-Mobile US, Inc.*		2,770		218,193
Corning, Inc.		6,844		195,191
VeriSign, Inc.*		913		172,219
Expedia Group, Inc.		1,225		164,652
CDW Corp.		1,268		156,268
Omnicom Group, Inc.		1,907		149,318
Symantec Corp.		4,982		117,725
CBS Corp. — Class B		2,868		115,781
Arista Networks, Inc.*		477		113,965
CenturyLink, Inc.		8,604		107,378
Fox Corp. — Class A		3,106		97,948
Juniper Networks, Inc.		3,031		75,017
Discovery, Inc. — Class C*		3,040		74,845
Viacom, Inc. — Class B		3,102		74,541
F5 Networks, Inc.*		527		74,001
Interpublic Group of Companies, Inc.		3,394		73,175
DISH Network Corp. — Class A*		2,108		71,820
News Corp. — Class A		3,380		47,050
Fox Corp. — Class B		1,423		44,881
Discovery, Inc. — Class A*,1		1,385		36,883
TripAdvisor, Inc.*		920		35,586
News Corp. — Class B		1,066		15,238
Total Communications				32,180,855
Industrial - 6.3%
Boeing Co.		4,685		1,782,502
Honeywell International, Inc.		6,306		1,066,975
Union Pacific Corp.		6,175		1,000,226
United Technologies Corp.		7,109		970,521
Lockheed Martin Corp.		2,178		849,551
3M Co.		5,042		828,905
United Parcel Service, Inc. — Class B		6,120		733,298
General Electric Co.		76,489		683,812
Caterpillar, Inc.		4,931		622,835
Northrop Grumman Corp.		1,379		516,835
CSX Corp.		6,996		484,613
Raytheon Co.		2,441		478,900
Deere & Co.		2,759		465,388
Norfolk Southern Corp.		2,309		414,835
L3Harris Technologies, Inc.		1,956		408,100
Illinois Tool Works, Inc.		2,580		403,744
Waste Management, Inc.		3,421		393,415
General Dynamics Corp.		2,051		374,779
Emerson Electric Co.		5,391		360,442
Roper Technologies, Inc.		911		324,863
FedEx Corp.		2,103		306,134
Johnson Controls International plc		6,974		306,089
Eaton Corporation plc		3,681		306,075
TE Connectivity Ltd.		2,944		274,322
Ingersoll-Rand plc		2,117		260,836
Amphenol Corp. — Class A		2,607		251,575
TransDigm Group, Inc.		435		226,491

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
NOVA FUND

	Shares		Value
Cummins, Inc.		1,382	$	224,810
Ball Corp.		2,910		211,877
Agilent Technologies, Inc.		2,712		207,821
Parker-Hannifin Corp.		1,126		203,367
Stanley Black & Decker, Inc.		1,329		191,921
AMETEK, Inc.		2,001		183,732
Fortive Corp.		2,588		177,433
Vulcan Materials Co.		1,159		175,287
Rockwell Automation, Inc.		1,026		169,085
Republic Services, Inc. — Class A		1,855		160,550
Keysight Technologies, Inc.*		1,644		159,879
Mettler-Toledo International, Inc.*		215		151,446
Martin Marietta Materials, Inc.		546		149,659
Amcor plc		14,238		138,820
Waters Corp.*		585		130,590
Dover Corp.		1,275		126,939
Xylem, Inc.		1,577		125,561
Kansas City Southern		882		117,315
Wabtec Corp.		1,596		114,689
Expeditors International of Washington, Inc.		1,496		111,138
IDEX Corp.		664		108,816
Jacobs Engineering Group, Inc.		1,187		108,611
Garmin Ltd.		1,266		107,218
Masco Corp.		2,536		105,700
CH Robinson Worldwide, Inc.		1,186		100,549
Textron, Inc.		2,017		98,752
Arconic, Inc.		3,395		88,270
Packaging Corporation of America		830		88,063
Allegion plc		818		84,786
PerkinElmer, Inc.		973		82,870
J.B. Hunt Transport Services, Inc.		748		82,766
Westrock Co.		2,256		82,231
Huntington Ingalls Industries, Inc.		362		76,668
Snap-on, Inc.		484		75,765
Fortune Brands Home & Security, Inc.		1,226		67,062
FLIR Systems, Inc.		1,189		62,529
AO Smith Corp.		1,212		57,824
Sealed Air Corp.		1,354		56,205
Pentair plc		1,473		55,680
Flowserve Corp.		1,150		53,716
Total Industrial				19,972,061
Consumer, Cyclical - 5.9%
Home Depot, Inc.		9,599		2,227,160
Walmart, Inc.		12,465		1,479,346
McDonald’s Corp.		6,656		1,429,110
Costco Wholesale Corp.		3,855		1,110,664
NIKE, Inc. — Class B		10,972		1,030,490
Starbucks Corp.		10,491		927,614
Lowe’s Companies, Inc.		6,764		743,769
TJX Companies, Inc.		10,596		590,621
Target Corp.		4,477		478,636
General Motors Co.		11,012		412,730
Walgreens Boots Alliance, Inc.		6,649		367,756
Dollar General Corp.		2,253		358,092
Ross Stores, Inc.		3,196		351,080
Ford Motor Co.		34,349		314,637
Yum! Brands, Inc.		2,667		302,518
Marriott International, Inc. — Class A		2,396		297,991
Delta Air Lines, Inc.		5,072		292,147
O’Reilly Automotive, Inc.*		670		267,002
VF Corp.		2,861		254,600
Dollar Tree, Inc.*		2,073		236,654
Hilton Worldwide Holdings, Inc.		2,514		234,079
AutoZone, Inc.*		215		233,193
Southwest Airlines Co.		4,240		229,002
PACCAR, Inc.		3,036		212,550
Aptiv plc		2,245		196,258
Chipotle Mexican Grill, Inc. — Class A*		223		187,425
United Airlines Holdings, Inc.*		1,936		171,162
Fastenal Co.		5,025		164,167
Royal Caribbean Cruises Ltd.		1,506		163,145
DR Horton, Inc.		2,950		155,494
Carnival Corp.		3,509		153,378
Copart, Inc.*		1,767		141,943
Best Buy Company, Inc.		2,033		140,257
Lennar Corp. — Class A		2,493		139,234
Ulta Beauty, Inc.*		516		129,335
CarMax, Inc.*		1,451		127,688
Genuine Parts Co.		1,279		127,376
Darden Restaurants, Inc.		1,076		127,205
MGM Resorts International		4,570		126,680
Hasbro, Inc.		1,029		122,132
WW Grainger, Inc.		387		114,997
NVR, Inc.*		30		111,521
Advance Auto Parts, Inc.		625		103,375
Norwegian Cruise Line Holdings Ltd.*		1,890		97,845
Tractor Supply Co.		1,044		94,419
American Airlines Group, Inc.		3,472		93,640
Wynn Resorts Ltd.		849		92,303
Tiffany & Co.		953		88,276
Whirlpool Corp.		556		88,048
LKQ Corp.*		2,701		84,946
PulteGroup, Inc.		2,258		82,530
Alaska Air Group, Inc.		1,079		70,038
Kohl’s Corp.		1,394		69,226
BorgWarner, Inc.		1,810		66,391
Tapestry, Inc.		2,514		65,490
Mohawk Industries, Inc.*		524		65,013
Newell Brands, Inc.		3,340		62,525
PVH Corp.		650		57,350
Harley-Davidson, Inc.		1,374		49,423
Hanesbrands, Inc.		3,168		48,534
Leggett & Platt, Inc.		1,152		47,163
Capri Holdings Ltd.*		1,329		44,070
Ralph Lauren Corp. — Class A		454		43,343
Macy’s, Inc.		2,707		42,067
L Brands, Inc.		2,035		39,866
Under Armour, Inc. — Class A*		1,649		32,881
Gap, Inc.		1,877		32,585
Nordstrom, Inc.		937		31,549

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
NOVA FUND

	Shares		Value
Under Armour, Inc. — Class C*		1,703	$	30,875
Total Consumer, Cyclical				18,704,609
Energy - 3.1%
Exxon Mobil Corp.		37,084		2,618,501
Chevron Corp.		16,639		1,973,385
ConocoPhillips		9,730		554,415
Schlumberger Ltd.		12,122		414,209
Phillips 66		3,931		402,534
EOG Resources, Inc.		5,087		377,557
Kinder Morgan, Inc.		17,063		351,669
Marathon Petroleum Corp.		5,770		350,528
Occidental Petroleum Corp.		7,840		348,645
Valero Energy Corp.		3,632		309,592
ONEOK, Inc.		3,619		266,684
Williams Companies, Inc.		10,623		255,589
Pioneer Natural Resources Co.		1,465		184,253
Halliburton Co.		7,677		144,711
Hess Corp.		2,268		137,169
Baker Hughes a GE Co.		5,688		131,962
Diamondback Energy, Inc.		1,428		128,391
Concho Resources, Inc.		1,762		119,640
Noble Energy, Inc.		4,192		94,152
TechnipFMC plc		3,678		88,787
Marathon Oil Corp.		7,047		86,467
Devon Energy Corp.		3,543		85,245
Apache Corp.		3,295		84,352
National Oilwell Varco, Inc.		3,382		71,698
HollyFrontier Corp.		1,327		71,180
Cabot Oil & Gas Corp. — Class A		3,666		64,412
Cimarex Energy Co.		889		42,619
Helmerich & Payne, Inc.		959		38,427
Total Energy				9,796,773
Utilities - 2.4%
NextEra Energy, Inc.		4,283		997,896
Duke Energy Corp.		6,386		612,162
Dominion Energy, Inc.		7,204		583,812
Southern Co.		9,161		565,875
Exelon Corp.		8,515		411,360
American Electric Power Company, Inc.		4,328		405,490
Sempra Energy		2,406		355,150
Xcel Energy, Inc.		4,596		298,234
Public Service Enterprise Group, Inc.		4,432		275,139
Consolidated Edison, Inc.		2,911		275,002
WEC Energy Group, Inc.		2,764		262,856
Eversource Energy		2,836		242,393
Edison International		3,138		236,668
FirstEnergy Corp.		4,733		228,273
DTE Energy Co.		1,607		213,667
Entergy Corp.		1,743		204,558
PPL Corp.		6,330		199,332
American Water Works Company, Inc.		1,583		196,656
Ameren Corp.		2,154		172,428
CMS Energy Corp.		2,487		159,044
Evergy, Inc.		2,063		137,313
CenterPoint Energy, Inc.		4,402		132,852
Atmos Energy Corp.1		1,035		117,876
Alliant Energy Corp.		2,082		112,282
NiSource, Inc.		3,272		97,899
Pinnacle West Capital Corp.		984		95,517
AES Corp.		5,818		95,066
NRG Energy, Inc.		2,217		87,793
Total Utilities				7,772,593
Basic Materials - 1.5%
Linde plc		4,737		917,652
DuPont de Nemours, Inc.		6,534		465,939
Ecolab, Inc.		2,194		434,500
Air Products & Chemicals, Inc.		1,931		428,412
Sherwin-Williams Co.		720		395,906
Dow, Inc.		6,514		310,392
Newmont Goldcorp Corp.		7,186		272,493
PPG Industries, Inc.		2,070		245,316
LyondellBasell Industries N.V. — Class A		2,262		202,381
International Paper Co.		3,443		143,986
Nucor Corp.		2,657		135,268
Celanese Corp. — Class A		1,085		132,685
Freeport-McMoRan, Inc.		12,717		121,702
International Flavors & Fragrances, Inc.1		935		114,715
FMC Corp.		1,143		100,218
CF Industries Holdings, Inc.		1,914		94,169
Eastman Chemical Co.		1,201		88,670
Albemarle Corp.1		929		64,584
Mosaic Co.		3,111		63,775
Total Basic Materials				4,732,763
Total Common Stocks
(Cost $213,727,181)				216,535,681
MUTUAL FUNDS† - 9.2%
Guggenheim Strategy Fund II2		493,489		12,253,331
Guggenheim Ultra Short Duration Fund — Institutional Class2		986,742		9,827,952
Guggenheim Strategy Fund III2		279,864		6,946,227
Total Mutual Funds
(Cost $29,071,280)				29,027,510
	Face Amount
U.S. TREASURY BILLS†† - 1.8%
U.S. Treasury Bills
1.82% due 11/21/193	$	4,190,000		4,179,351
1.77% due 11/21/193,4		1,000,000		997,458
1.93% due 10/29/193,5		597,000		596,133
Total U.S. Treasury Bills
(Cost $5,772,611)				5,772,942

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
NOVA FUND

	Face Amount		Value
FEDERAL AGENCY NOTES†† - 1.3%
Federal Farm Credit Bank
2.15% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/226	$	4,000,000	$	3,997,729
Total Federal Agency Notes
(Cost $4,000,000)				3,997,729
REPURCHASE AGREEMENTS††,7 - 18.0%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/194		35,354,521		35,354,521
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/194		11,368,835		11,368,835
Barclays Capital issued 09/30/19 at 2.00% due 10/01/194		10,231,951		10,231,951
Total Repurchase Agreements
(Cost $56,955,307)				56,955,307

	Shares		Value
SECURITIES LENDING COLLATERAL†,8 - 0.1%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%9		182,654	$	182,654
Total Securities Lending Collateral
(Cost $182,654)				182,654
Total Investments - 98.9%
(Cost $309,709,033)			$	312,471,823
Other Assets & Liabilities, net - 1.1%				3,438,132
Total Net Assets - 100.0%			$	315,909,955

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Purchased†
S&P 500 Index Mini Futures Contracts		104		Dec 2019	$	15,484,300	$	(3,398	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay			Payment Frequency		Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
BNP Paribas	S&P 500 Index		2.59	%		At Maturity		10/29/19		1,407	$	4,189,254	$	(11,440	)
Barclays Bank plc	S&P 500 Index		2.36	%		At Maturity		10/31/19		16,569		49,322,909		(14,581	)
Goldman Sachs International	S&P 500 Index		2.36	%		At Maturity		10/28/19		60,483		180,041,557		(44,784	)
											$	233,553,720	$	(70,805	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Affiliated issuer.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
5	All or a portion of this security is pledged as futures collateral at September 30, 2019.
6	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
7	Repurchase Agreements — See Note 6.
8	Securities lending collateral — See Note 7.
9	Rate indicated is the 7-day yield as of September 30, 2019.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
NOVA FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	216,535,681	$	—	$	—	$	216,535,681
Mutual Funds		29,027,510		—		—		29,027,510
U.S. Treasury Bills		—		5,772,942		—		5,772,942
Federal Agency Notes		—		3,997,729		—		3,997,729
Repurchase Agreements		—		56,955,307		—		56,955,307
Securities Lending Collateral		182,654		—		—		182,654
Total Assets	$	245,745,845	$	66,725,978	$	—	$	312,471,823

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	3,398	$	—	$	—	$	3,398
Equity Index Swap Agreements**		—		70,805		—		70,805
Total Liabilities	$	3,398	$	70,805	$	—	$	74,203

^** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:    

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	15,241,850	$	—	$	(3,000,000	)	$	(21,989	)	$	33,470		$	12,253,331		493,489	$	203,442
Guggenheim Strategy Fund III		6,937,830		—		—			—			8,397			6,946,227		279,864		93,727
Guggenheim Ultra Short Duration Fund — Institutional Class		10,837,820		—		(1,000,000	)		1,003			(10,871	)		9,827,952		986,742		148,427
	$	33,017,500	$	—	$	(4,000,000	)	$	(20,986	)	$	30,996		$	29,027,510			$	445,596

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

NOVA FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value - including $179,738 of securities loaned (cost $223,682,446)	$	226,489,006
Investments in affiliated issuers, at value (cost $29,071,280)		29,027,510
Repurchase agreements, at value (cost $56,955,307)		56,955,307
Cash		1,108
Segregated cash with broker		52,554
Receivables:
Fund shares sold		9,526,355
Dividends		189,665
Variation margin on futures contracts		34,251
Interest		11,824
Securities lending income		15
Total assets		322,287,595
Liabilities:
Unrealized depreciation on OTC swap agreements		70,805
Payable for:
Fund shares redeemed		2,952,572
Securities purchased		2,684,968
Return of securities lending collateral		182,654
Management fees		110,864
Transfer agent and administrative fees		37,588
Swap settlement		18,588
Portfolio accounting fees		14,801
Distribution and service fees		11,669
Trustees’ fees*		5,258
Miscellaneous		287,873
Total liabilities		6,377,640
Commitments and contingent liabilities (Note 11)		—
Net assets	$	315,909,955
Net assets consist of:
Paid in capital	$	321,883,858
Total distributable earnings (loss)		(5,973,903	)
Net assets	$	315,909,955
Investor Class:
Net assets	$	253,223,947
Capital shares outstanding		3,070,942
Net asset value per share	$	82.46
A-Class:
Net assets	$	16,324,990
Capital shares outstanding		213,616
Net asset value per share	$	76.42
Maximum offering price per share (Net asset value divided by 95.25%)	$	80.23
C-Class:
Net assets	$	4,116,066
Capital shares outstanding		61,037
Net asset value per share	$	67.44
H-Class:
Net assets	$	42,244,952
Capital shares outstanding		552,251
Net asset value per share	$	76.50

^* 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 | 21

NOVA FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of unaffiliated issuers	$	2,181,462
Dividends from securities of affiliated issuers		445,596
Interest		460,057
Income from securities lending, net		670
Total investment income		3,087,785
Expenses:
Management fees		1,062,062
Distribution and service fees:
A-Class		33,976
C-Class		20,563
H-Class		48,587
Transfer agent and administrative fees		354,021
Portfolio accounting fees		135,072
Registration fees		116,020
Trustees’ fees*		31,930
Custodian fees		20,047
Line of credit fees		1,087
Miscellaneous		208,329
Total expenses		2,031,694
Less:
Expenses waived by Adviser		(13,401	)
Net expenses		2,018,293
Net investment income		1,069,492
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	18,983,994
Investments in affiliated issuers		(20,986	)
Swap agreements		(358,178	)
Futures contracts		4,766,587
Net realized gain		23,371,417
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(16,759,892	)
Investments in affiliated issuers		30,996
Swap agreements		(1,402,294	)
Futures contracts		(2,983,080	)
Net change in unrealized appreciation (depreciation)		(21,114,270	)
Net realized and unrealized gain		2,257,147
Net increase in net assets resulting from operations	$	3,326,639

^* 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.

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,069,492		$	2,138,897
Net realized gain on investments		23,371,417			7,243,373
Net change in unrealized appreciation (depreciation) on investments		(21,114,270	)		31,370,800
Net increase in net assets resulting from operations		3,326,639			40,753,070
Capital share transactions:
Proceeds from sale of shares
Investor Class		1,000,239,110			3,267,814,139
A-Class		98,266,242			284,034,909
C-Class		523,282			17,370,012
H-Class		207,347,745			512,367,614
Cost of shares redeemed
Investor Class		(990,925,349	)		(3,509,187,067	)
A-Class		(108,721,814	)		(296,190,807	)
C-Class		(849,889	)		(23,997,212	)
H-Class		(215,403,836	)		(496,652,060	)
Net decrease from capital share transactions		(9,524,509	)		(244,440,472	)
Net decrease in net assets		(6,197,870	)		(203,687,402	)
Net assets:
Beginning of period		322,107,825			525,795,227
End of period	$	315,909,955		$	322,107,825
Capital share activity:
Shares sold
Investor Class		12,336,214			44,886,045
A-Class		1,309,417			4,152,405
C-Class		8,122			281,514
H-Class		2,774,386			7,575,202
Shares redeemed
Investor Class		(12,425,999	)		(48,213,160	)
A-Class		(1,460,861	)		(4,329,588	)
C-Class		(13,038	)		(387,815	)
H-Class		(2,910,141	)		(7,334,463	)
Net decrease in shares		(381,900	)		(3,369,860	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	76.83		$	69.63		$	60.14		$	49.18		$	49.42		$	42.15
Income (loss) from investment operations:
Net investment income (loss)b		.33			.48			.40			.08			.07			.14
Net gain (loss) on investments (realized and unrealized)		5.30			6.72			10.50			11.56			(.25	)		7.18
Total from investment operations		5.63			7.20			10.90			11.64			(.18	)		7.32
Less distributions from:
Net investment income		—			—			(.02	)		(.02	)		(.06	)		(.05	)
Net realized gains		—			—			(1.39	)		(.66	)		—			—
Total distributions		—			—			(1.41	)		(.68	)		(.06	)		(.05	)
Net asset value, end of period	$	82.46		$	76.83		$	69.63		$	60.14		$	49.18		$	49.42
Total Return		7.33	%		10.34	%		18.09	%		23.84	%		(0.36	%)		17.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	253,224		$	242,831		$	451,764		$	78,531		$	164,820		$	136,800
Ratios to average net assets:
Net investment income (loss)		0.83	%		0.65	%		0.58	%		0.15	%		0.14	%		0.31	%
Total expensesc		1.36	%		1.35	%		1.26	%		1.28	%		1.25	%		1.27	%
Net expensesd		1.35	%		1.35	%		1.26	%		1.28	%		1.25	%		1.27	%
Portfolio turnover rate		366	%		1,078	%		2,067	%		1,288	%		619	%		403	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	71.28		$	64.72		$	56.18		$	46.08		$	46.40		$	39.67
Income (loss) from investment operations:
Net investment income (loss)b		.23			.28			.25			(.02	)		(.05	)		.02
Net gain (loss) on investments (realized and unrealized)		4.91			6.28			9.70			10.80			(.21	)		6.76
Total from investment operations		5.14			6.56			9.95			10.78			(.26	)		6.78
Less distributions from:
Net investment income		—			—			(.02	)		(.02	)		(.06	)		(.05	)
Net realized gains		—			—			(1.39	)		(.66	)		—			—
Total distributions		—			—			(1.41	)		(.68	)		(.06	)		(.05	)
Net asset value, end of period	$	76.42		$	71.28		$	64.72		$	56.18		$	46.08		$	46.40
Total Returne		7.21	%		10.14	%		17.68	%		23.57	%		(0.56	%)		17.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,325		$	26,022		$	35,094		$	3,528		$	13,626		$	3,930
Ratios to average net assets:
Net investment income (loss)		0.61	%		0.41	%		0.39	%		(0.05	%)		(0.11	%)		0.05	%
Total expensesc		1.61	%		1.60	%		1.51	%		1.53	%		1.51	%		1.52	%
Net expensesd		1.60	%		1.60	%		1.51	%		1.53	%		1.51	%		1.52	%
Portfolio turnover rate		366	%		1,078	%		2,067	%		1,288	%		619	%		403	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (continued)

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

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	63.15		$	57.77		$	50.57		$	41.86		$	42.50		$	36.62
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(0.20	)		(.27	)		(.40	)		(.34	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		4.36			5.58			8.88			9.79			(.24	)		6.21
Total from investment operations		4.29			5.38			8.61			9.39			(.58	)		5.93
Less distributions from:
Net investment income		—			—			(.02	)		(.02	)		(.06	)		(.05	)
Net realized gains		—			—			(1.39	)		(.66	)		—			—
Total distributions		—			—			(1.41	)		(.68	)		(.06	)		(.05	)
Net asset value, end of period	$	67.44		$	63.15		$	57.77		$	50.57		$	41.86		$	42.50
Total Returne		6.79	%		9.31	%		17.01	%		22.60	%		(1.36	%)		16.19	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,116		$	4,165		$	9,952		$	9,676		$	11,090		$	11,993
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		(0.33	%)		(0.48	%)		(0.89	%)		(0.83	%)		(0.70	%)
Total expensesc		2.36	%		2.35	%		2.28	%		2.27	%		2.26	%		2.27	%
Net expensesd		2.35	%		2.35	%		2.28	%		2.27	%		2.26	%		2.27	%
Portfolio turnover rate		366	%		1,078	%		2,067	%		1,288	%		619	%		403	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	71.35		$	64.80		$	56.15		$	46.06		$	46.40		$	44.40
Income (loss) from investment operations:
Net investment income (loss)b		.21			.30			.19			(.07	)		(.06	)		.02
Net gain (loss) on investments (realized and unrealized)		4.94			6.25			9.87			10.84			(.22	)		2.03
Total from investment operations		5.15			6.55			10.06			10.77			(.28	)		2.05
Less distributions from:
Net investment income		—			—			(.02	)		(.02	)		(.06	)		(.05	)
Net realized gains		—			—			(1.39	)		(.66	)		—			—
Total distributions		—			—			(1.41	)		(.68	)		(.06	)		(.05	)
Net asset value, end of period	$	76.50		$	71.35		$	64.80		$	56.15		$	46.06		$	46.40
Total Return		7.22	%		10.11	%		17.88	%		23.56	%		(0.60	%)		4.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	42,245		$	49,090		$	28,985		$	17,716		$	13,938		$	1,692
Ratios to average net assets:
Net investment income (loss)		0.57	%		0.44	%		0.30	%		(0.15	%)		(0.14	%)		0.08	%
Total expensesc		1.61	%		1.61	%		1.52	%		1.52	%		1.51	%		1.51	%
Net expensesd		1.60	%		1.61	%		1.52	%		1.52	%		1.51	%		1.51	%
Portfolio turnover rate		366	%		1,078	%		2,067	%		1,288	%		619	%		403	%

a	Unaudited figures for the period ended September 30, 2019. 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	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Total return does not reflect the impact of any applicable sales charges.
f	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
Microsoft Corp.	4.0%
Apple, Inc.	3.5%
Amazon.com, Inc.	2.7%
Facebook, Inc. — Class A	1.6%
Berkshire Hathaway, Inc. — Class B	1.5%
JPMorgan Chase & Co.	1.4%
Alphabet, Inc. — Class C	1.4%
Alphabet, Inc. — Class A	1.4%
Johnson & Johnson	1.3%
Procter & Gamble Co.	1.2%
Top Ten Total	20.0%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	5.16%	2.42%	8.97%	11.38%
A-Class Shares with sales charge‡	0.17%	(2.44%)	7.92%	10.84%
C-Class Shares	4.77%	1.64%	8.15%	10.53%
C-Class Shares with CDSC§	3.77%	0.64%	8.15%	10.53%
H-Class Shares	5.16%	2.42%	8.96%	11.39%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 27

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
S&P 500® FUND

	Shares		Value
COMMON STOCKS† - 92.2%
Consumer, Non-cyclical - 20.0%
Johnson & Johnson		14,230	$	1,841,077
Procter & Gamble Co.		13,493		1,678,259
Merck & Company, Inc.		13,805		1,162,105
Coca-Cola Co.		20,750		1,129,630
UnitedHealth Group, Inc.		5,110		1,110,505
Pfizer, Inc.		29,822		1,071,505
PepsiCo, Inc.		7,539		1,033,597
Abbott Laboratories		9,529		797,291
Medtronic plc		7,235		785,866
PayPal Holdings, Inc.*		6,345		657,279
Philip Morris International, Inc.		8,389		636,977
Thermo Fisher Scientific, Inc.		2,159		628,852
Amgen, Inc.		3,234		625,811
AbbVie, Inc.		7,972		603,640
Eli Lilly & Co.		4,581		512,293
Danaher Corp.		3,442		497,128
Bristol-Myers Squibb Co.		8,819		447,212
CVS Health Corp.		7,012		442,247
Gilead Sciences, Inc.		6,829		432,822
Mondelez International, Inc. — Class A		7,775		430,113
Altria Group, Inc.		10,072		411,945
Celgene Corp.*		3,821		379,425
Automatic Data Processing, Inc.		2,340		377,723
Stryker Corp.		1,730		374,199
Becton Dickinson and Co.		1,456		368,310
Colgate-Palmolive Co.		4,626		340,057
Intuitive Surgical, Inc.*		622		335,836
Anthem, Inc.		1,379		331,098
S&P Global, Inc.		1,328		325,333
Zoetis, Inc.		2,575		320,819
Cigna Corp.		2,036		309,044
Boston Scientific Corp.*		7,511		305,623
Allergan plc		1,769		297,705
Kimberly-Clark Corp.		1,856		263,645
Global Payments, Inc.		1,618		257,262
Edwards Lifesciences Corp.*		1,121		246,519
Illumina, Inc.*		793		241,247
Baxter International, Inc.		2,753		240,805
Estee Lauder Companies, Inc. — Class A		1,193		237,348
Vertex Pharmaceuticals, Inc.*		1,386		234,816
Biogen, Inc.*		994		231,423
Sysco Corp.		2,767		219,700
Constellation Brands, Inc. — Class A		902		186,967
Humana, Inc.		728		186,128
Moody’s Corp.		877		179,636
General Mills, Inc.		3,254		179,361
HCA Healthcare, Inc.		1,434		172,682
Zimmer Biomet Holdings, Inc.		1,107		151,958
IQVIA Holdings, Inc.*		982		146,691
IHS Markit Ltd.*		2,163		144,661
Verisk Analytics, Inc. — Class A		882		139,479
Tyson Foods, Inc. — Class A		1,589		136,877
McKesson Corp.		997		136,250
FleetCor Technologies, Inc.*		467		133,926
IDEXX Laboratories, Inc.*		464		126,175
Hershey Co.		803		124,457
Archer-Daniels-Midland Co.		3,003		123,333
Monster Beverage Corp.*		2,086		121,113
Cintas Corp.		448		120,109
Regeneron Pharmaceuticals, Inc.*		431		119,559
Alexion Pharmaceuticals, Inc.*		1,209		118,410
Corteva, Inc.		4,038		113,064
Kroger Co.		4,307		111,035
ResMed, Inc.		775		104,710
McCormick & Company, Inc.		664		103,783
Clorox Co.		678		102,968
Church & Dwight Company, Inc.		1,332		100,219
Centene Corp.*		2,230		96,470
Kraft Heinz Co.		3,355		93,722
Equifax, Inc.		652		91,717
Laboratory Corporation of America Holdings*		527		88,536
Kellogg Co.		1,341		86,293
Teleflex, Inc.		249		84,598
Conagra Brands, Inc.		2,624		80,504
Cooper Companies, Inc.		268		79,596
Quest Diagnostics, Inc.		727		77,811
Cardinal Health, Inc.		1,607		75,834
Hologic, Inc.*		1,441		72,756
Incyte Corp.*		962		71,409
Align Technology, Inc.*		392		70,921
WellCare Health Plans, Inc.*		271		70,235
Gartner, Inc.*		486		69,493
JM Smucker Co.		615		67,662
AmerisourceBergen Corp. — Class A		820		67,511
MarketAxess Holdings, Inc.		204		66,810
Hormel Foods Corp.		1,497		65,464
Universal Health Services, Inc. — Class B		438		65,152
Dentsply Sirona, Inc.		1,209		64,452
Brown-Forman Corp. — Class B		981		61,587
Varian Medical Systems, Inc.*		491		58,473
Molson Coors Brewing Co. — Class B		1,013		58,247
Lamb Weston Holdings, Inc.		785		57,085
Mylan N.V.*		2,782		55,028
United Rentals, Inc.*		416		51,850
Avery Dennison Corp.		454		51,561
Henry Schein, Inc.*		800		50,800
ABIOMED, Inc.*		245		43,583
Campbell Soup Co.		910		42,697
Perrigo Company plc		734		41,023
Nielsen Holdings plc		1,918		40,758
Robert Half International, Inc.		635		35,344
DaVita, Inc.*		522		29,791
Quanta Services, Inc.		767		28,993
Rollins, Inc.		759		25,859
H&R Block, Inc.		1,082		25,557
Nektar Therapeutics*		945		17,213
Coty, Inc. — Class A		1,586		16,669
Total Consumer, Non-cyclical				28,956,706
Financial - 16.5%
Berkshire Hathaway, Inc. — Class B*		10,572		2,199,187
JPMorgan Chase & Co.		17,240		2,028,976

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
S&P 500® FUND

	Shares		Value
Visa, Inc. — Class A		9,312	$	1,601,757
Bank of America Corp.		45,168		1,317,551
Mastercard, Inc. — Class A		4,813		1,307,066
Wells Fargo & Co.		21,618		1,090,412
Citigroup, Inc.		12,180		841,394
American Tower Corp. — Class A REIT		2,387		527,837
American Express Co.		3,669		433,969
U.S. Bancorp		7,731		427,834
CME Group, Inc. — Class A		1,931		408,098
Chubb Ltd.		2,457		396,658
Goldman Sachs Group, Inc.		1,745		361,616
PNC Financial Services Group, Inc.		2,401		336,524
Crown Castle International Corp. REIT		2,242		311,660
Prologis, Inc. REIT		3,403		290,004
Morgan Stanley		6,773		289,004
BlackRock, Inc. — Class A		633		282,090
Intercontinental Exchange, Inc.		3,022		278,840
Marsh & McLennan Companies, Inc.		2,730		273,136
Equinix, Inc. REIT		458		264,174
Charles Schwab Corp.		6,273		262,400
American International Group, Inc.		4,690		261,233
Simon Property Group, Inc. REIT		1,661		258,535
Aon plc		1,272		246,221
Progressive Corp.		3,152		243,492
Capital One Financial Corp.		2,536		230,725
BB&T Corp.		4,131		220,471
Bank of New York Mellon Corp.		4,625		209,096
Aflac, Inc.		3,992		208,861
Travelers Companies, Inc.		1,404		208,761
MetLife, Inc.		4,293		202,458
Public Storage REIT		810		198,669
Welltower, Inc. REIT		2,185		198,070
Prudential Financial, Inc.		2,167		194,922
Allstate Corp.		1,775		192,907
SunTrust Banks, Inc.		2,393		164,638
Equity Residential REIT		1,880		162,169
AvalonBay Communities, Inc. REIT		753		162,144
SBA Communications Corp. REIT		610		147,102
Ventas, Inc. REIT		2,009		146,717
Digital Realty Trust, Inc. REIT		1,123		145,777
T. Rowe Price Group, Inc.		1,270		145,097
Discover Financial Services		1,717		139,231
Willis Towers Watson plc		695		134,114
Realty Income Corp. REIT		1,716		131,583
State Street Corp.		2,009		118,913
Hartford Financial Services Group, Inc.		1,950		118,190
Essex Property Trust, Inc. REIT		354		115,634
M&T Bank Corp.		721		113,896
Synchrony Financial		3,291		112,190
Weyerhaeuser Co. REIT		4,016		111,243
Northern Trust Corp.		1,159		108,158
Fifth Third Bancorp		3,939		107,850
Ameriprise Financial, Inc.		706		103,853
Boston Properties, Inc. REIT		775		100,487
KeyCorp		5,410		96,514
CBRE Group, Inc. — Class A*		1,813		96,107
Cincinnati Financial Corp.		819		95,553
HCP, Inc. REIT		2,649		94,384
Alexandria Real Estate Equities, Inc. REIT		612		94,272
Arthur J Gallagher & Co.		1,004		89,928
First Republic Bank		907		87,707
Citizens Financial Group, Inc.		2,410		85,242
Regions Financial Corp.		5,379		85,096
Extra Space Storage, Inc. REIT		693		80,956
Mid-America Apartment Communities, Inc. REIT		615		79,956
Principal Financial Group, Inc.		1,398		79,882
Huntington Bancshares, Inc.		5,595		79,841
UDR, Inc. REIT		1,579		76,550
Loews Corp.		1,402		72,175
Cboe Global Markets, Inc.		602		69,176
Host Hotels & Resorts, Inc. REIT		3,936		68,053
Duke Realty Corp. REIT		1,949		66,208
Lincoln National Corp.		1,079		65,085
Regency Centers Corp. REIT		903		62,749
Nasdaq, Inc.		622		61,796
Everest Re Group Ltd.		220		58,540
SVB Financial Group*		278		58,088
E*TRADE Financial Corp.		1,293		56,491
Raymond James Financial, Inc.		667		55,001
Vornado Realty Trust REIT		854		54,374
Comerica, Inc.		806		53,188
Western Union Co.		2,286		52,967
Globe Life, Inc.		541		51,806
Federal Realty Investment Trust REIT		376		51,189
Iron Mountain, Inc. REIT		1,548		50,140
Kimco Realty Corp. REIT		2,276		47,523
Franklin Resources, Inc.		1,521		43,896
Zions Bancorp North America		954		42,472
Apartment Investment & Management Co. — Class A REIT		803		41,868
Assurant, Inc.		330		41,521
SL Green Realty Corp. REIT		444		36,297
Invesco Ltd.		2,077		35,184
People’s United Financial, Inc.		2,150		33,616
Unum Group		1,125		33,435
Alliance Data Systems Corp.		221		28,317
Affiliated Managers Group, Inc.		273		22,755
Macerich Co. REIT1		594		18,764
Total Financial				23,848,256
Technology - 16.0%
Microsoft Corp.		41,168		5,723,587
Apple, Inc.		22,904		5,129,809
Intel Corp.		23,886		1,230,846
Adobe, Inc.*		2,617		722,946
salesforce.com, Inc.*		4,728		701,824
International Business Machines Corp.		4,777		694,671
Accenture plc — Class A		3,436		660,915
Oracle Corp.		11,870		653,206
Texas Instruments, Inc.		5,034		650,594
Broadcom, Inc.		2,147		592,722
NVIDIA Corp.		3,283		571,472
QUALCOMM, Inc.		6,554		499,939
Fidelity National Information Services, Inc.		3,307		439,037

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
S&P 500® FUND

	Shares		Value
Intuit, Inc.		1,403	$	373,114
Fiserv, Inc.*		3,078		318,850
Micron Technology, Inc.*		5,952		255,043
Applied Materials, Inc.		4,980		248,502
Analog Devices, Inc.		1,992		222,566
Activision Blizzard, Inc.		4,135		218,824
Lam Research Corp.		779		180,035
Cognizant Technology Solutions Corp. — Class A		2,978		179,469
Autodesk, Inc.*		1,184		174,877
Advanced Micro Devices, Inc.*		5,854		169,707
Electronic Arts, Inc.*		1,589		155,436
HP, Inc.		7,991		151,190
Paychex, Inc.		1,724		142,696
KLA Corp.		859		136,968
Xilinx, Inc.		1,362		130,616
Microchip Technology, Inc.		1,283		119,204
Cerner Corp.		1,717		117,048
Synopsys, Inc.*		811		111,310
Hewlett Packard Enterprise Co.		7,040		106,797
ANSYS, Inc.*		454		100,497
Cadence Design Systems, Inc.*		1,511		99,847
MSCI, Inc. — Class A		457		99,512
Western Digital Corp.		1,596		95,185
Maxim Integrated Products, Inc.		1,463		84,722
Akamai Technologies, Inc.*		889		81,237
Broadridge Financial Solutions, Inc.		616		76,649
Take-Two Interactive Software, Inc.*		610		76,457
Skyworks Solutions, Inc.		926		73,385
Seagate Technology plc		1,276		68,636
NetApp, Inc.		1,283		67,370
Citrix Systems, Inc.		664		64,089
Leidos Holdings, Inc.		729		62,607
Jack Henry & Associates, Inc.		415		60,578
Fortinet, Inc.*		765		58,721
Qorvo, Inc.*		635		47,079
DXC Technology Co.		1,412		41,654
Xerox Holdings Corp.		1,026		30,688
IPG Photonics Corp.*		193		26,171
Total Technology				23,098,904
Communications - 13.7%
Amazon.com, Inc.*		2,240		3,888,438
Facebook, Inc. — Class A*		12,972		2,310,054
Alphabet, Inc. — Class C*		1,629		1,985,751
Alphabet, Inc. — Class A*		1,615		1,972,141
AT&T, Inc.		39,397		1,490,782
Verizon Communications, Inc.		22,299		1,345,968
Walt Disney Co.		9,713		1,265,798
Cisco Systems, Inc.		22,889		1,130,945
Comcast Corp. — Class A		24,455		1,102,431
Netflix, Inc.*		2,361		631,851
Booking Holdings, Inc.*		229		449,438
Charter Communications, Inc. — Class A*		872		359,369
Twitter, Inc.*		4,168		171,722
eBay, Inc.		4,251		165,704
Motorola Solutions, Inc.		893		152,176
T-Mobile US, Inc.*		1,705		134,303
Corning, Inc.		4,211		120,098
VeriSign, Inc.*		562		106,010
Expedia Group, Inc.		754		101,345
CDW Corp.		781		96,250
Omnicom Group, Inc.		1,173		91,846
Symantec Corp.		3,066		72,450
CBS Corp. — Class B		1,764		71,213
Arista Networks, Inc.*		293		70,003
CenturyLink, Inc.		5,293		66,057
Fox Corp. — Class A		1,911		60,263
Juniper Networks, Inc.		1,864		46,134
Discovery, Inc. — Class C*		1,871		46,064
Viacom, Inc. — Class B		1,909		45,873
F5 Networks, Inc.*		324		45,496
Interpublic Group of Companies, Inc.		2,088		45,017
DISH Network Corp. — Class A*		1,297		44,189
News Corp. — Class A		2,079		28,940
Fox Corp. — Class B		875		27,597
Discovery, Inc. — Class A*,1		852		22,689
TripAdvisor, Inc.*		566		21,893
News Corp. — Class B		657		9,392
Total Communications				19,795,690
Industrial - 8.5%
Boeing Co.		2,882		1,096,515
Honeywell International, Inc.		3,880		656,496
Union Pacific Corp.		3,799		615,362
United Technologies Corp.		4,374		597,138
Lockheed Martin Corp.		1,340		522,680
3M Co.		3,102		509,969
United Parcel Service, Inc. — Class B		3,765		451,122
General Electric Co.		47,053		420,654
Caterpillar, Inc.		3,033		383,098
Northrop Grumman Corp.		849		318,197
CSX Corp.		4,304		298,138
Raytheon Co.		1,501		294,481
Deere & Co.		1,698		286,419
Norfolk Southern Corp.		1,420		255,117
L3Harris Technologies, Inc.		1,204		251,203
Illinois Tool Works, Inc.		1,587		248,350
Waste Management, Inc.		2,104		241,960
General Dynamics Corp.		1,261		230,422
Emerson Electric Co.		3,317		221,775
Roper Technologies, Inc.		561		200,053
FedEx Corp.		1,294		188,368
Johnson Controls International plc		4,290		188,288
Eaton Corporation plc		2,264		188,251
TE Connectivity Ltd.		1,812		168,842
Ingersoll-Rand plc		1,302		160,419
Amphenol Corp. — Class A		1,604		154,786
TransDigm Group, Inc.		268		139,540
Cummins, Inc.		851		138,432
Ball Corp.		1,790		130,330
Agilent Technologies, Inc.		1,669		127,895
Parker-Hannifin Corp.		693		125,163
Stanley Black & Decker, Inc.		818		118,127
AMETEK, Inc.		1,231		113,030
Fortive Corp.		1,592		109,148

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
S&P 500® FUND

	Shares		Value
Vulcan Materials Co.		713	$	107,834
Rockwell Automation, Inc.		631		103,989
Republic Services, Inc. — Class A		1,141		98,753
Keysight Technologies, Inc.*		1,012		98,417
Mettler-Toledo International, Inc.*		133		93,685
Martin Marietta Materials, Inc.		337		92,372
Amcor plc		8,759		85,400
Waters Corp.*		360		80,363
Dover Corp.		784		78,055
Xylem, Inc.		971		77,311
Kansas City Southern		542		72,092
Wabtec Corp.		982		70,566
Expeditors International of Washington, Inc.		921		68,421
IDEX Corp.		409		67,027
Jacobs Engineering Group, Inc.		731		66,887
Garmin Ltd.		780		66,058
Masco Corp.		1,561		65,062
CH Robinson Worldwide, Inc.		730		61,889
Textron, Inc.		1,241		60,759
Arconic, Inc.		2,089		54,314
Packaging Corporation of America		510		54,111
Allegion plc		504		52,240
PerkinElmer, Inc.		599		51,017
J.B. Hunt Transport Services, Inc.		461		51,010
Westrock Co.		1,387		50,556
Huntington Ingalls Industries, Inc.		223		47,229
Snap-on, Inc.		298		46,649
Fortune Brands Home & Security, Inc.		754		41,244
FLIR Systems, Inc.		731		38,443
AO Smith Corp.		746		35,592
Sealed Air Corp.		833		34,578
Pentair plc		906		34,247
Flowserve Corp.		707		33,024
Total Industrial				12,288,962
Consumer, Cyclical - 8.0%
Home Depot, Inc.		5,904		1,369,846
Walmart, Inc.		7,667		909,919
McDonald’s Corp.		4,095		879,237
Costco Wholesale Corp.		2,371		683,109
NIKE, Inc. — Class B		6,750		633,960
Starbucks Corp.		6,454		570,663
Lowe’s Companies, Inc.		4,161		457,543
TJX Companies, Inc.		6,518		363,313
Target Corp.		2,755		294,537
General Motors Co.		6,774		253,889
Walgreens Boots Alliance, Inc.		4,090		226,218
Dollar General Corp.		1,386		220,291
Ross Stores, Inc.		1,967		216,075
Ford Motor Co.		21,130		193,551
Yum! Brands, Inc.		1,641		186,139
Marriott International, Inc. — Class A		1,474		183,322
Delta Air Lines, Inc.		3,120		179,712
O’Reilly Automotive, Inc.*		413		164,585
VF Corp.		1,760		156,622
Dollar Tree, Inc.*		1,276		145,668
Hilton Worldwide Holdings, Inc.		1,547		144,041
AutoZone, Inc.*		132		143,170
Southwest Airlines Co.		2,608		140,858
PACCAR, Inc.		1,867		130,709
Aptiv plc		1,381		120,727
Chipotle Mexican Grill, Inc. — Class A*		138		115,985
United Airlines Holdings, Inc.*		1,191		105,296
Fastenal Co.		3,092		101,015
Royal Caribbean Cruises Ltd.		926		100,313
DR Horton, Inc.		1,814		95,616
Carnival Corp.		2,160		94,413
Copart, Inc.*		1,087		87,319
Best Buy Company, Inc.		1,251		86,306
Lennar Corp. — Class A		1,533		85,618
Ulta Beauty, Inc.*		317		79,456
CarMax, Inc.*		893		78,584
Genuine Parts Co.		788		78,477
Darden Restaurants, Inc.		663		78,380
MGM Resorts International		2,811		77,921
Hasbro, Inc.		633		75,131
WW Grainger, Inc.		238		70,722
NVR, Inc.*		19		70,630
Advance Auto Parts, Inc.		385		63,679
Norwegian Cruise Line Holdings Ltd.*		1,162		60,157
Tractor Supply Co.		643		58,153
American Airlines Group, Inc.		2,137		57,635
Wynn Resorts Ltd.		522		56,752
Whirlpool Corp.		343		54,318
Tiffany & Co.		586		54,281
LKQ Corp.*		1,662		52,270
PulteGroup, Inc.		1,390		50,804
Alaska Air Group, Inc.		665		43,165
Kohl’s Corp.		858		42,608
BorgWarner, Inc.		1,113		40,825
Tapestry, Inc.		1,547		40,299
Mohawk Industries, Inc.*		323		40,075
Newell Brands, Inc.		2,054		38,451
PVH Corp.		400		35,292
Harley-Davidson, Inc.		845		30,395
Hanesbrands, Inc.		1,949		29,859
Leggett & Platt, Inc.		709		29,026
Capri Holdings Ltd.*		817		27,092
Ralph Lauren Corp. — Class A		280		26,732
Macy’s, Inc.		1,666		25,890
L Brands, Inc.		1,252		24,527
Under Armour, Inc. — Class A*		1,014		20,219
Gap, Inc.		1,155		20,051
Nordstrom, Inc.		576		19,394
Under Armour, Inc. — Class C*		1,048		19,000
Total Consumer, Cyclical				11,509,835
Energy - 4.2%
Exxon Mobil Corp.		22,813		1,610,826
Chevron Corp.		10,236		1,213,990
ConocoPhillips		5,986		341,082
Schlumberger Ltd.		7,457		254,806
Phillips 66		2,418		247,603
EOG Resources, Inc.		3,129		232,234
Kinder Morgan, Inc.		10,497		216,343

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
S&P 500® FUND

	Shares		Value
Marathon Petroleum Corp.		3,549	$	215,602
Occidental Petroleum Corp.		4,823		214,479
Valero Energy Corp.		2,234		190,426
ONEOK, Inc.		2,227		164,108
Williams Companies, Inc.		6,535		157,232
Pioneer Natural Resources Co.		901		113,319
Halliburton Co.		4,724		89,047
Hess Corp.		1,396		84,430
Baker Hughes a GE Co.		3,500		81,200
Diamondback Energy, Inc.		879		79,031
Concho Resources, Inc.		1,084		73,604
Noble Energy, Inc.		2,578		57,902
TechnipFMC plc		2,263		54,629
Marathon Oil Corp.		4,335		53,191
Devon Energy Corp.		2,180		52,451
Apache Corp.		2,027		51,891
National Oilwell Varco, Inc.		2,081		44,117
HollyFrontier Corp.		816		43,770
Cabot Oil & Gas Corp. — Class A		2,256		39,638
Cimarex Energy Co.		547		26,223
Helmerich & Payne, Inc.		590		23,641
Total Energy				6,026,815
Utilities - 3.3%
NextEra Energy, Inc.		2,635		613,929
Duke Energy Corp.		3,928		376,538
Dominion Energy, Inc.		4,431		359,088
Southern Co.		5,636		348,136
Exelon Corp.		5,238		253,048
American Electric Power Company, Inc.		2,662		249,403
Sempra Energy		1,480		218,463
Xcel Energy, Inc.		2,828		183,509
Public Service Enterprise Group, Inc.		2,726		169,230
Consolidated Edison, Inc.		1,791		169,196
WEC Energy Group, Inc.		1,701		161,765
Eversource Energy		1,745		149,145
Edison International		1,931		145,636
FirstEnergy Corp.		2,911		140,398
DTE Energy Co.		988		131,365
Entergy Corp.		1,072		125,810
PPL Corp.		3,894		122,622
American Water Works Company, Inc.		974		121,000
Ameren Corp.		1,326		106,146
CMS Energy Corp.		1,530		97,844
Evergy, Inc.		1,270		84,531
CenterPoint Energy, Inc.		2,708		81,727
Atmos Energy Corp.1		637		72,548
Alliant Energy Corp.		1,281		69,084
NiSource, Inc.		2,013		60,229
Pinnacle West Capital Corp.		606		58,824
AES Corp.		3,580		58,497
NRG Energy, Inc.		1,364		54,014
Total Utilities				4,781,725
Basic Materials - 2.0%
Linde plc		2,915		564,694
DuPont de Nemours, Inc.		4,019		286,595
Ecolab, Inc.		1,350		267,354
Air Products & Chemicals, Inc.		1,188		263,570
Sherwin-Williams Co.		443		243,592
Dow, Inc.		4,007		190,934
Newmont Goldcorp Corp.		4,421		167,644
PPG Industries, Inc.		1,274		150,982
LyondellBasell Industries N.V. — Class A		1,392		124,542
International Paper Co.		2,118		88,574
Nucor Corp.		1,635		83,238
Celanese Corp. — Class A		667		81,567
Freeport-McMoRan, Inc.		7,822		74,857
International Flavors & Fragrances, Inc.1		576		70,670
FMC Corp.		703		61,639
CF Industries Holdings, Inc.		1,177		57,908
Eastman Chemical Co.		739		54,560
Albemarle Corp.1		571		39,696
Mosaic Co.		1,914		39,237
Total Basic Materials				2,911,853
Total Common Stocks
(Cost $93,075,001)				133,218,746
	Face Amount
FEDERAL AGENCY NOTES†† - 5.5%
Federal Farm Credit Bank
2.15% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/222	$	8,000,000		7,995,458
Total Federal Agency Notes
(Cost $8,000,000)				7,995,458
U.S. TREASURY BILLS†† - 0.2%
U.S. Treasury Bills
1.82% due 11/21/193		270,000		269,314
1.93% due 10/29/193,4		45,000		44,935
Total U.S. Treasury Bills
(Cost $314,224)				314,249
REPURCHASE AGREEMENTS††,5 - 2.3%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/196		2,040,877		2,040,877
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/196		656,278		656,278
Barclays Capital issued 09/30/19 at 2.00% due 10/01/196		590,650		590,650
Total Repurchase Agreements
(Cost $3,287,805)				3,287,805

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
S&P 500® FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,7 - 0.1%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%8		174,214	$	174,214
Total Securities Lending Collateral
(Cost $174,214)				174,214
Total Investments - 100.3%
(Cost $104,851,244)			$	144,990,472
Other Assets & Liabilities, net - (0.3)%				(439,282	)
Total Net Assets - 100.0%			$	144,551,190

Futures Contracts
Description	Number of Contracts	Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Purchased†
S&P 500 Index Mini Futures Contracts	9	Dec 2019	$	1,339,988	$	(4,952	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay				Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Equity Index Swap Agreements††
Goldman Sachs International	S&P 500 Index		2.36	%	At Maturity			10/28/19		1,278	$	3,803,039	$	8,372
Barclays Bank plc	S&P 500 Index		2.36	%	At Maturity			10/31/19		784		2,332,731		(690	)
BNP Paribas	S&P 500 Index		2.59	%	At Maturity			10/29/19		1,306		3,887,829		(10,081	)
											$	10,023,599	$	(2,399	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as futures collateral at September 30, 2019.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7-day yield as of September 30, 2019.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
S&P 500® FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	133,218,746	$	—	$	—	$	133,218,746
Federal Agency Notes		—		7,995,458		—		7,995,458
U.S. Treasury Bills		—		314,249		—		314,249
Repurchase Agreements		—		3,287,805		—		3,287,805
Securities Lending Collateral		174,214		—		—		174,214
Equity Index Swap Agreements**		—		8,372		—		8,372
Total Assets	$	133,392,960	$	11,605,884	$	—	$	144,998,844

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	4,952	$	—	$	—	$	4,952
Equity Index Swap Agreements**		—		10,771		—		10,771
Total Liabilities	$	4,952	$	10,771	$	—	$	15,723

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

S&P 500^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value including $171,392 of securities loaned (cost $101,563,439)	$	141,702,667
Repurchase agreements, at value (cost $3,287,805)		3,287,805
Cash		1,411
Segregated cash with broker		15,137
Unrealized appreciation on OTC swap agreements		8,372
Receivables:
Securities sold		2,684,968
Fund shares sold		2,015,586
Dividends		115,933
Interest		16,663
Variation margin on futures contracts		6,277
Securities lending income		17
Total assets		149,854,836
Liabilities:
Unrealized depreciation on OTC swap agreements		10,771
Payable for:
Fund shares redeemed		4,787,999
Return of securities lending collateral		174,214
Management fees		84,055
Distribution and service fees		37,401
Transfer agent and administrative fees		28,019
Portfolio accounting fees		16,811
Trustees’ fees*		2,891
Swap settlement		1,968
Miscellaneous		159,517
Total liabilities		5,303,646
Commitments and contingent liabilities (Note 11)		—
Net assets	$	144,551,190
Net assets consist of:
Paid in capital	$	109,184,634
Total distributable earnings (loss)		35,366,556
Net assets	$	144,551,190
A-Class:
Net assets	$	20,763,704
Capital shares outstanding		383,010
Net asset value per share	$	54.21
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.91
C-Class:
Net assets	$	20,272,827
Capital shares outstanding		419,562
Net asset value per share	$	48.32
H-Class:
Net assets	$	103,514,659
Capital shares outstanding		1,909,872
Net asset value per share	$	54.20

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	1,376,070
Interest		215,494
Income from securities lending, net		443
Total investment income		1,592,007
Expenses:
Management fees		588,589
Distribution and service fees
A-Class		26,969
C-Class		69,887
H-Class		151,759
Transfer agent and administrative fees		196,197
Portfolio accounting fees		117,720
Trustees’ fees*		17,979
Custodian fees		11,055
Miscellaneous		180,055
Total expenses		1,360,210
Net investment income		231,797
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		6,789,021
Swap agreements		1,462,372
Futures contracts		(258,680	)
Net realized gain		7,992,713
Net change in unrealized appreciation (depreciation) on:
Investments		(142,766	)
Swap agreements		(191,519	)
Futures contracts		(5,073	)
Net change in unrealized appreciation (depreciation)		(339,358	)
Net realized and unrealized gain		7,653,355
Net increase in net assets resulting from operations	$	7,885,152

^* 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 | 35

S&P 500^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	231,797		$	469,575
Net realized gain on investments		7,992,713			597,688
Net change in unrealized appreciation (depreciation) on investments		(339,358	)		1,645,818
Net increase in net assets resulting from operations		7,885,152			2,713,081
Distributions to shareholders:
A-Class		—			(321,942	)
C-Class		—			(227,483	)
H-Class		—			(2,546,090	)
Total distributions to shareholders		—			(3,095,515	)
Capital share transactions:
Proceeds from sale of shares
A-Class		27,976,561			93,539,104
C-Class		11,753,962			72,975,867
H-Class		403,294,198			981,240,477
Distributions reinvested
A-Class		—			291,602
C-Class		—			213,467
H-Class		—			2,531,231
Cost of shares redeemed
A-Class		(28,856,207	)		(94,083,958	)
C-Class		(6,559,767	)		(79,616,540	)
H-Class		(425,863,294	)		(1,041,846,099	)
Net decrease from capital share transactions		(18,254,547	)		(64,754,849	)
Net decrease in net assets		(10,369,395	)		(65,137,283	)
Net assets:
Beginning of period		154,920,585			220,057,868
End of period	$	144,551,190		$	154,920,585
Capital share activity:
Shares sold
A-Class		538,059			1,850,237
C-Class		243,052			1,601,634
H-Class		7,617,940			19,539,683
Shares issued from reinvestment of distributions
A-Class		—			6,304
C-Class		—			5,146
H-Class		—			54,729
Shares redeemed
A-Class		(548,991	)		(1,894,508	)
C-Class		(140,009	)		(1,755,858	)
H-Class		(8,036,507	)		(20,931,485	)
Net decrease in shares		(326,456	)		(1,524,118	)

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	51.55		$	48.72		$	45.52		$	39.85		$	41.40		$	37.78
Income (loss) from investment operations:
Net investment income (loss)b		.10			.15			.13			.06			.03			.04
Net gain (loss) on investments (realized and unrealized)		2.56			3.45			5.44			5.97			—			4.08
Total from investment operations		2.66			3.60			5.57			6.03			.03			4.12
Less distributions from:
Net investment income		—			(.05	)		(.12	)		(.05	)		(.01	)		(.02	)
Net realized gains		—			(.72	)		(2.25	)		(.31	)		(1.57	)		(.48	)
Total distributions		—			(.77	)		(2.37	)		(.36	)		(1.58	)		(.50	)
Net asset value, end of period	$	54.21		$	51.55		$	48.72		$	45.52		$	39.85		$	41.40
Total Returnc		5.16	%		7.59	%		12.16	%		15.17	%		0.08	%		10.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,764		$	20,307		$	21,041		$	20,960		$	39,793		$	28,022
Ratios to average net assets:
Net investment income (loss)		0.38	%		0.30	%		0.27	%		0.14	%		0.02	%		0.11	%
Total expenses		1.67	%		1.67	%		1.58	%		1.57	%		1.55	%		1.59	%
Portfolio turnover rate		84	%		157	%		151	%		133	%		181	%		256	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	46.12		$	44.00		$	41.62		$	36.74		$	38.58		$	35.51
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.20	)		(.19	)		(.22	)		(.26	)		(.23	)
Net gain (loss) on investments (realized and unrealized)		2.30			3.09			4.94			5.46			—			3.80
Total from investment operations		2.20			2.89			4.75			5.24			(.26	)		3.57
Less distributions from:
Net investment income		—			(.05	)		(.12	)		(.05	)		(.01	)		(.02	)
Net realized gains		—			(.72	)		(2.25	)		(.31	)		(1.57	)		(.48	)
Total distributions		—			(.77	)		(2.37	)		(.36	)		(1.58	)		(.50	)
Net asset value, end of period	$	48.32		$	46.12		$	44.00		$	41.62		$	36.74		$	38.58
Total Returnc		4.77	%		6.78	%		11.29	%		14.33	%		(0.67	%)		10.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,273		$	14,599		$	20,484		$	20,931		$	15,667		$	20,977
Ratios to average net assets:
Net investment income (loss)		(0.43	%)		(0.45	%)		(0.44	%)		(0.57	%)		(0.70	%)		(0.62	%)
Total expenses		2.42	%		2.41	%		2.33	%		2.33	%		2.31	%		2.34	%
Portfolio turnover rate		84	%		157	%		151	%		133	%		181	%		256	%

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

S&P 500^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	51.54		$	48.71		$	45.51		$	39.84		$	41.40		$	37.78
Income (loss) from investment operations:
Net investment income (loss)b		.10			.16			.15			.07			.03			.05
Net gain (loss) on investments (realized and unrealized)		2.56			3.44			5.42			5.96			(.01	)		4.07
Total from investment operations		2.66			3.60			5.57			6.03			.02			4.12
Less distributions from:
Net investment income		—			(.05	)		(.12	)		(.05	)		(.01	)		(.02	)
Net realized gains		—			(.72	)		(2.25	)		(.31	)		(1.57	)		(.48	)
Total distributions		—			(.77	)		(2.37	)		(.36	)		(1.58	)		(.50	)
Net asset value, end of period	$	54.20		$	51.54		$	48.71		$	45.51		$	39.84		$	41.40
Total Return		5.16	%		7.59	%		12.14	%		15.20	%		0.06	%		10.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	103,515		$	120,014		$	178,533		$	226,744		$	229,420		$	254,610
Ratios to average net assets:
Net investment income (loss)		0.36	%		0.32	%		0.31	%		0.16	%		0.07	%		0.12	%
Total expenses		1.67	%		1.66	%		1.58	%		1.58	%		1.55	%		1.58	%
Portfolio turnover rate		84	%		157	%		151	%		133	%		181	%		256	%

a	Unaudited figures for the period ended September 30, 2019. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
Investor Class	January 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	10.1%
Guggenheim Ultra Short Duration Fund — Institutional Class	7.4%
Total	17.5%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 39

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

Average Annual Returns^*
Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	(4.86%)	(3.40%)	(10.48%)	(13.67%)
A-Class Shares	(4.98%)	(3.66%)	(10.71%)	(13.89%)
A-Class Shares with sales charge‡	(9.50%)	(8.24%)	(11.58%)	(14.31%)
C-Class Shares	(5.33%)	(4.37%)	(11.39%)	(14.54%)
C-Class Shares with CDSC§	(6.27%)	(5.33%)	(11.39%)	(14.54%)
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

	6 Month†	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	(4.99%)	(3.66%)	(10.73%)	(10.33%)
S&P 500 Index	6.08%	4.25%	10.84%	10.34%

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

40 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
INVERSE S&P 500® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 17.5%
Guggenheim Strategy Fund II1		282,633	$	7,017,780
Guggenheim Ultra Short Duration Fund — Institutional Class1		521,111		5,190,266
Total Mutual Funds
(Cost $12,178,005)				12,208,046
	Face Amount
FEDERAL AGENCY NOTES†† - 58.3%
Federal Farm Credit Bank
2.15% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/222	$	8,000,000		7,995,458
2.05% (U.S. Prime Rate - 2.95%, Rate Floor: 0.00%) due 07/20/202		6,000,000		6,004,079
1.97% due 08/19/21		5,290,000		5,268,053
1.98% (3 Month USD LIBOR - 0.21%, Rate Floor: 0.00%) due 08/10/202		5,000,000		4,994,294
2.20% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222		5,000,000		4,988,805
2.20% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222		4,500,000		4,513,278
2.19% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		3,040,000		3,043,123
Federal Home Loan Bank
1.97% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 12/26/192		3,900,000		3,900,045
Total Federal Agency Notes
(Cost $40,720,481)				40,707,135

	Face Amount		Value
U.S. TREASURY BILLS†† - 4.1%
U.S. Treasury Bills
1.82% due 11/21/193	$	2,870,000	$	2,862,706
Total U.S. Treasury Bills
(Cost $2,862,484)				2,862,706
REPURCHASE AGREEMENTS††,4 - 20.1%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/195		8,729,646		8,729,646
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/195		2,807,163		2,807,163
Barclays Capital issued 09/30/19 at 2.00% due 10/01/195		2,526,447		2,526,447
Total Repurchase Agreements
(Cost $14,063,256)				14,063,256
Total Investments - 100.0%
(Cost $69,824,226)			$	69,841,143
Other Assets & Liabilities, net - 0.0%				26,281
Total Net Assets - 100.0%			$	69,867,424

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive			Payment Frequency		Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
Goldman Sachs International	S&P 500 Index		(2.26	)%		At Maturity		10/28/19		14,637	$	43,571,798	$	12,879
Barclays Bank plc	S&P 500 Index		(2.21	)%		At Maturity		10/31/19		8,520		25,362,697		7,499
BNP Paribas	S&P 500 Index		(2.09	)%		At Maturity		10/29/19		308		916,644		2,503
											$	69,851,139	$	22,881

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	Rate indicated is the effective yield at the time of purchase.
4	Repurchase Agreements — See Note 6.
5	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	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, 2019
INVERSE S&P 500® STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	12,208,046	$	—	$	—	$	12,208,046
Federal Agency Notes		—		40,707,135		—		40,707,135
U.S. Treasury Bills		—		2,862,706		—		2,862,706
Repurchase Agreements		—		14,063,256		—		14,063,256
Equity Index Swap Agreements**		—		22,881		—		22,881
Total Assets	$	12,208,046	$	57,655,978	$	—	$	69,864,024

^** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	7,512,127	$	—	$	(500,000	)	$	202	$	5,451		$	7,017,780		282,633	$	100,255
Guggenheim Ultra Short Duration Fund — Institutional Class		5,195,477		—		—			—		(5,211	)		5,190,266		521,111		72,142
	$	12,707,604	$	—	$	(500,000	)	$	202	$	240		$	12,208,046			$	172,397

42 | 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, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $43,582,965)	$	43,569,841
Investments in affiliated issuers, at value (cost $12,178,005)		12,208,046
Repurchase agreements, at value (cost $14,063,256)		14,063,256
Unrealized appreciation on OTC swap agreements		22,881
Receivables:
Interest		112,288
Fund shares sold		40,907
Dividends		23,751
Swap settlement		1,164
Total assets		70,042,134
Liabilities:
Payable for:
Management fees		47,110
Fund shares redeemed		37,242
Registration fees		23,945
Printing fees		15,404
Transfer agent and administrative fees		13,363
Professional fees		11,531
Distribution and service fees		6,416
Portfolio accounting fees		5,345
Licensing fees		3,537
Trustees’ fees*		1,151
Miscellaneous		9,666
Total liabilities		174,710
Commitments and contingent liabilities (Note 11)		—
Net assets	$	69,867,424
Net assets consist of:
Paid in capital	$	278,811,114
Total distributable earnings (loss)		(208,943,690	)
Net assets	$	69,867,424
Investor Class:
Net assets	$	41,523,752
Capital shares outstanding		768,811
Net asset value per share	$	54.01
A-Class:
Net assets	$	19,446,557
Capital shares outstanding		390,888
Net asset value per share	$	49.75
Maximum offering price per share (Net asset value divided by 95.25%)	$	52.23
C-Class:
Net assets	$	1,806,703
Capital shares outstanding		40,676
Net asset value per share	$	44.42
H-Class:
Net assets	$	7,090,412
Capital shares outstanding		142,539
Net asset value per share	$	49.74

^* 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

INVERSE S&P 500^® STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	172,397
Interest		587,511
Total investment income		759,908
Expenses:
Management fees		276,094
Distribution and service fees:
A-Class		10,723
C-Class		11,171
H-Class		8,217
Transfer agent and administrative fees		76,693
Registration fees		32,917
Portfolio accounting fees		30,677
Trustees’ fees*		8,701
Custodian fees		4,363
Miscellaneous		35,512
Total expenses		495,068
Less:
Expenses waived by Adviser		(6,509	)
Net expenses		488,559
Net investment income		271,349
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	702
Investments in affiliated issuers		202
Swap agreements		(4,148,911	)
Futures contracts		(177,263	)
Net realized loss		(4,325,270	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(18,637	)
Investments in affiliated issuers		240
Swap agreements		611,639
Futures contracts		17,143
Net change in unrealized appreciation (depreciation)		610,385
Net realized and unrealized loss		(3,714,885	)
Net decrease in net assets resulting from operations	$	(3,443,536	)

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

44 | 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, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	271,349		$	481,630
Net realized loss on investments		(4,325,270	)		(7,446,581	)
Net change in unrealized appreciation (depreciation) on investments		610,385			(225,606	)
Net decrease in net assets resulting from operations		(3,443,536	)		(7,190,557	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		56,475,091			208,817,447
A-Class		20,902,700			9,058,886
C-Class		953,899			35,343,563
H-Class		11,205,845			70,374,514
Cost of shares redeemed
Investor Class		(58,512,308	)		(214,934,455	)
A-Class		(4,369,200	)		(10,101,675	)
C-Class		(1,699,726	)		(36,594,092	)
H-Class		(10,509,208	)		(66,764,405	)
Net increase (decrease) from capital share transactions		14,447,093			(4,800,217	)
Net increase (decrease) in net assets		11,003,557			(11,990,774	)
Net assets:
Beginning of period		58,863,867			70,854,641
End of period	$	69,867,424		$	58,863,867
Capital share activity:
Shares sold
Investor Class		1,016,072			3,461,135
A-Class		414,122			164,505
C-Class		20,421			716,652
H-Class		219,687			1,250,985
Shares redeemed
Investor Class		(1,059,334	)		(3,577,537	)
A-Class		(86,362	)		(182,576	)
C-Class		(36,886	)		(741,017	)
H-Class		(206,494	)		(1,203,450	)
Net increase (decrease) in shares		281,226			(111,303	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017g			Year Ended March 31, 2016g			Year Ended March 31, 2015g
Per Share Data
Net asset value, beginning of period	$	56.77		$	61.76		$	70.35		$	83.09		$	87.54		$	100.90
Income (loss) from investment operations:
Net investment income (loss)b		.28			.46			(.07	)		(.55	)		(.78	)		(1.02	)
Net gain (loss) on investments (realized and unrealized)		(3.04	)		(5.45	)		(8.52	)		(12.19	)		(3.67	)		(12.34	)
Total from investment operations		(2.76	)		(4.99	)		(8.59	)		(12.74	)		(4.45	)		(13.36	)
Net asset value, end of period	$	54.01		$	56.77		$	61.76		$	70.35		$	83.09		$	87.54
Total Return		(4.86	%)		(8.08	%)		(12.21	%)		(15.34	%)		(5.07	%)		(13.26	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	41,524		$	46,105		$	57,342		$	76,404		$	153,544		$	60,745
Ratios to average net assets:
Net investment income (loss)		1.00	%		0.78	%		(0.10	%)		(0.70	%)		(0.91	%)		(1.07	%)
Total expensesc		1.52	%		1.52	%		1.43	%		1.42	%		1.41	%		1.41	%
Net expensesd		1.49	%		1.51	%		1.43	%		1.42	%		1.41	%		1.41	%
Portfolio turnover rate		31	%		—			56	%		114	%		63	%		103	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017g			Year Ended March 31, 2016g			Year Ended March 31, 2015g
Per Share Data
Net asset value, beginning of period	$	52.36		$	57.11		$	65.22		$	77.21		$	81.54		$	94.27
Income (loss) from investment operations:
Net investment income (loss)b		.16			.27			(.22	)		(.70	)		(.96	)		(1.14	)
Net gain (loss) on investments (realized and unrealized)		(2.77	)		(5.02	)		(7.89	)		(11.29	)		(3.37	)		(11.59	)
Total from investment operations		(2.61	)		(4.75	)		(8.11	)		(11.99	)		(4.33	)		(12.73	)
Net asset value, end of period	$	49.75		$	52.36		$	57.11		$	65.22		$	77.21		$	81.54
Total Returne		(4.98	%)		(8.32	%)		(12.43	%)		(15.54	%)		(5.30	%)		(13.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19,447		$	3,306		$	4,637		$	6,331		$	9,256		$	4,758
Ratios to average net assets:
Net investment income (loss)		0.62	%		0.50	%		(0.37	%)		(0.96	%)		(1.18	%)		(1.32	%)
Total expensesc		1.77	%		1.76	%		1.68	%		1.67	%		1.66	%		1.66	%
Net expensesd		1.75	%		1.76	%		1.68	%		1.67	%		1.66	%		1.66	%
Portfolio turnover rate		31	%		—			56	%		114	%		63	%		103	%

46 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017g			Year Ended March 31, 2016g			Year Ended March 31, 2015g
Per Share Data
Net asset value, beginning of period	$	46.92		$	51.56		$	59.34		$	70.79		$	75.34		$	87.73
Income (loss) from investment operations:
Net investment income (loss)b		—	f		(.13	)		(.63	)		(1.12	)		(1.44	)		(1.68	)
Net gain (loss) on investments (realized and unrealized)		(2.50	)		(4.51	)		(7.15	)		(10.33	)		(3.11	)		(10.71	)
Total from investment operations		(2.50	)		(4.64	)		(7.78	)		(11.45	)		(4.55	)		(12.39	)
Net asset value, end of period	$	44.42		$	46.92		$	51.56		$	59.34		$	70.79		$	75.34
Total Returne		(5.33	%)		(9.00	%)		(13.11	%)		(16.20	%)		(6.05	%)		(14.09	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,807		$	2,681		$	4,203		$	6,760		$	9,244		$	5,121
Ratios to average net assets:
Net investment income (loss)		0.01	%		(0.27	%)		(1.14	%)		(1.69	%)		(1.93	%)		(2.07	%)
Total expensesc		2.52	%		2.51	%		2.43	%		2.42	%		2.41	%		2.41	%
Net expensesd		2.49	%		2.51	%		2.43	%		2.42	%		2.41	%		2.41	%
Portfolio turnover rate		31	%		—			56	%		114	%		63	%		103	%

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017g			Year Ended March 31, 2016g			Period Ended March 31, 2015g,h
Per Share Data
Net asset value, beginning of period	$	52.35		$	57.11		$	65.22		$	77.17		$	81.54		$	86.10
Income (loss) from investment operations:
Net investment income (loss)b		.19			.29			(.27	)		(.70	)		(.90	)		(.54	)
Net gain (loss) on investments (realized and unrealized)		(2.80	)		(5.05	)		(7.84	)		(11.25	)		(3.47	)		(4.02	)
Total from investment operations		(2.61	)		(4.76	)		(8.11	)		(11.95	)		(4.37	)		(4.56	)
Net asset value, end of period	$	49.74		$	52.35		$	57.11		$	65.22		$	77.17		$	81.54
Total Return		(4.99	%)		(8.33	%)		(12.43	%)		(15.47	%)		(5.37	%)		(5.30	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,090		$	6,772		$	4,672		$	2,857		$	7,319		$	13,085
Ratios to average net assets:
Net investment income (loss)		0.75	%		0.52	%		(0.45	%)		(0.96	%)		(1.08	%)		(1.27	%)
Total expensesc		1.77	%		1.77	%		1.69	%		1.67	%		1.67	%		1.60	%
Net expensesd		1.74	%		1.76	%		1.69	%		1.67	%		1.67	%		1.60	%
Portfolio turnover rate		31	%		—			56	%		114	%		63	%		103	%

a	Unaudited figures for the period ended September 30, 2019. 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	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Total return does not reflect the impact of any applicable sales charges.
f	Net investment income is less than $0.01 per share.
g	Reverse share split — Per share amounts for the periods presented through March 31, 2017 have been restated to reflect 1:6 reverse share split effective October 28, 2016.
h	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	November 28, 2014
C-Class	November 28, 2014
H-Class	November 28, 2014

Ten Largest Holdings (% of Total Net Assets)
Microsoft Corp.	8.1%
Apple, Inc.	7.8%
Amazon.com, Inc.	6.6%
Guggenheim Strategy Fund II	4.8%
Guggenheim Ultra Short Duration Fund — Institutional Class	4.7%
Facebook, Inc. — Class A	3.3%
Alphabet, Inc. — Class C	3.3%
Alphabet, Inc. — Class A	2.9%
Intel Corp.	1.9%
Cisco Systems, Inc.	1.8%
Top Ten Total	45.2%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	Since Inception (11/28/14)
A-Class Shares	7.21%	(3.61%)	24.48%
A-Class Shares with sales charge‡	2.12%	(8.19%)	23.24%
C-Class Shares	6.81%	(4.33%)	23.51%
C-Class Shares with CDSC§	5.81%	(5.29%)	23.51%
H-Class Shares	7.17%	(3.65%)	25.09%
NASDAQ-100 Index	5.59%	2.73%	14.04%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

48 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 70.9%
Technology - 29.8%
Microsoft Corp.		94,720	$	13,168,922
Apple, Inc.		56,063		12,556,430
Intel Corp.		60,988		3,142,712
Adobe, Inc.*		6,683		1,846,179
Texas Instruments, Inc.		12,853		1,661,122
Broadcom, Inc.		5,480		1,512,864
NVIDIA Corp.		8,385		1,459,577
QUALCOMM, Inc.		16,737		1,276,698
Fiserv, Inc.*		9,358		969,395
Intuit, Inc.		3,580		952,065
Micron Technology, Inc.*		15,196		651,149
Applied Materials, Inc.		12,718		634,628
Analog Devices, Inc.		5,086		568,259
Activision Blizzard, Inc.		10,559		558,782
NXP Semiconductor N.V.		4,526		493,877
Lam Research Corp.		1,990		459,909
Cognizant Technology Solutions Corp. — Class A		7,603		458,195
Autodesk, Inc.*		3,024		446,645
Advanced Micro Devices, Inc.*		14,945		433,255
Paychex, Inc.		4,947		409,463
Electronic Arts, Inc.*		4,057		396,856
Workday, Inc. — Class A*		2,258		383,770
KLA Corp.		2,192		349,514
Xilinx, Inc.		3,478		333,540
Microchip Technology, Inc.		3,277		304,466
Cerner Corp.		4,383		298,789
Synopsys, Inc.*		2,069		283,970
NetEase, Inc. ADR		1,004		267,245
Cadence Design Systems, Inc.*		3,857		254,870
ASML Holding N.V. — Class G		1,000		248,420
Western Digital Corp.		4,075		243,033
Check Point Software Technologies Ltd.*		2,096		229,512
Maxim Integrated Products, Inc.		3,735		216,294
Take-Two Interactive Software, Inc.*		1,558		195,280
Skyworks Solutions, Inc.		2,364		187,347
Citrix Systems, Inc.		1,802		173,929
NetApp, Inc.		3,275		171,970
Total Technology				48,198,931
Communications - 24.8%
Amazon.com, Inc.*		6,138		10,655,016
Facebook, Inc. — Class A*		30,125		5,364,660
Alphabet, Inc. — Class C*		4,342		5,292,898
Alphabet, Inc. — Class A*		3,820		4,664,755
Cisco Systems, Inc.		58,935		2,911,979
Comcast Corp. — Class A		62,442		2,814,885
Netflix, Inc.*		6,028		1,613,213
Charter Communications, Inc. — Class A*		3,049		1,256,554
Booking Holdings, Inc.*		585		1,148,127
T-Mobile US, Inc.*		11,764		926,650
eBay, Inc.		11,547		450,102
Baidu, Inc. ADR*		3,878		398,503
Sirius XM Holdings, Inc.		61,262		383,194
MercadoLibre, Inc.*		684		377,041
JD.com, Inc. ADR*		12,738		359,339
VeriSign, Inc.*		1,629		307,278
Expedia Group, Inc.		1,884		253,228
Symantec Corp.		8,509		201,068
Ctrip.com International Ltd. ADR*		6,705		196,390
Liberty Global plc — Class C*		7,066		168,100
Fox Corp. — Class A		4,752		149,854
Fox Corp. — Class B		3,614		113,986
Liberty Global plc — Class A*		2,823		69,869
Total Communications				40,076,689
Consumer, Non-cyclical - 10.1%
PepsiCo, Inc.		19,248		2,638,901
PayPal Holdings, Inc.*		16,200		1,678,158
Amgen, Inc.		8,256		1,597,619
Gilead Sciences, Inc.		17,436		1,105,094
Mondelez International, Inc. — Class A		19,854		1,098,323
Celgene Corp.*		9,758		968,969
Automatic Data Processing, Inc.		5,975		964,485
Intuitive Surgical, Inc.*		1,586		856,329
Illumina, Inc.*		2,024		615,741
Vertex Pharmaceuticals, Inc.*		3,539		599,577
Biogen, Inc.*		2,539		591,130
Kraft Heinz Co.		16,797		469,224
Monster Beverage Corp.*		7,501		435,508
Regeneron Pharmaceuticals, Inc.*		1,487		412,494
Cintas Corp.		1,411		378,289
Verisk Analytics, Inc. — Class A		2,251		355,973
IDEXX Laboratories, Inc.*		1,185		322,237
Alexion Pharmaceuticals, Inc.*		3,087		302,341
Incyte Corp.*		2,961		219,795
Align Technology, Inc.*		1,100		199,012
BioMarin Pharmaceutical, Inc.*		2,471		166,545
Mylan N.V.*		7,102		140,478
Henry Schein, Inc.*		2,041		129,603
Total Consumer, Non-cyclical				16,245,825
Consumer, Cyclical - 5.1%
Costco Wholesale Corp.		6,055		1,744,506
Starbucks Corp.		16,479		1,457,073
Walgreens Boots Alliance, Inc.		12,434		687,725
Tesla, Inc.*,1		2,466		593,985
Marriott International, Inc. — Class A		4,535		564,018
Ross Stores, Inc.		5,021		551,557
O’Reilly Automotive, Inc.*		1,053		419,631
Dollar Tree, Inc.*		3,258		371,933
PACCAR, Inc.		4,769		333,878
Lululemon Athletica, Inc.*		1,692		325,761
United Airlines Holdings, Inc.*		3,537		312,706
Fastenal Co.		7,895		257,930
Hasbro, Inc.		1,737		206,165
Ulta Beauty, Inc.*		810		203,026
American Airlines Group, Inc.		6,130		165,326
Wynn Resorts Ltd.		1,482		161,123
Total Consumer, Cyclical				8,356,343

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

	Shares		Value
Industrial - 0.6%
CSX Corp.		10,989	$	761,208
J.B. Hunt Transport Services, Inc.		1,470		162,656
Total Industrial				923,864
Utilities - 0.3%
Xcel Energy, Inc.		7,090		460,070
Financial - 0.2%
Willis Towers Watson plc		1,776		342,715
Total Common Stocks
(Cost $116,342,406)				114,604,437
MUTUAL FUNDS† - 9.5%
Guggenheim Strategy Fund II2		309,250		7,678,675
Guggenheim Ultra Short Duration Fund — Institutional Class2		769,694		7,666,148
Total Mutual Funds
(Cost $15,350,840)				15,344,823
	Face Amount
U.S. TREASURY BILLS†† - 0.4%
U.S. Treasury Bills
1.82% due 11/21/193	$	500,000		498,729
1.93% due 10/29/193,4		161,000		160,766
Total U.S. Treasury Bills
(Cost $659,445)				659,495

	Face Amount		Value
REPURCHASE AGREEMENTS††,5 - 19.3%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/196	$	19,406,676	$	19,406,676
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/196		6,240,539		6,240,539
Barclays Capital issued 09/30/19 at 2.00% due 10/01/196		5,616,486		5,616,486
Total Repurchase Agreements
(Cost $31,263,701)				31,263,701
	Shares
SECURITIES LENDING COLLATERAL†,7 - 0.3%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%8		448,799		448,799
Total Securities Lending Collateral
(Cost $448,799)				448,799
Total Investments - 100.4%
(Cost $164,065,191)			$	162,321,255
Other Assets & Liabilities, net - (0.4)%				(684,343	)
Total Net Assets - 100.0%			$	161,636,912

Futures Contracts
Description	Number of Contracts			Expiration Date	Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Purchased†
NASDAQ-100 Index Mini Futures Contracts		54	Dec 2019		$	8,389,170	$	(15,388	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay				Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
Barclays Bank plc	NASDAQ-100 Index		2.41	%	At Maturity			10/31/19		623	$	4,830,342	$	(14,051	)
BNP Paribas	NASDAQ-100 Index		2.69	%	At Maturity			10/29/19		4,433		34,350,004		(239,773	)
Goldman Sachs International	NASDAQ-100 Index		2.46	%	At Maturity			10/28/19		20,784		161,061,801		(456,598	)
											$	200,242,147	$	(710,422	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Affiliated issuer.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as futures collateral at September 30, 2019.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	114,604,437	$	—	$	—	$	114,604,437
Mutual Funds		15,344,823		—		—		15,344,823
U.S. Treasury Bills		—		659,495		—		659,495
Repurchase Agreements		—		31,263,701		—		31,263,701
Securities Lending Collateral		448,799		—		—		448,799
Total Assets	$	130,398,059	$	31,923,196	$	—	$	162,321,255

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	15,388	$	—	$	—	$	15,388
Equity Index Swap Agreements**		—		710,422		—		710,422
Total Liabilities	$	15,388	$	710,422	$	—	$	725,810

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
MONTHLY REBALANCE NASDAQ-100® 2x STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	6,369,514	$	5,300,000	$	(4,000,000	)	$	(22,524	)	$	31,685	$	7,678,675		309,250	$	94,411
Guggenheim Ultra Short Duration Fund — Institutional Class		6,371,937		7,300,000		(6,000,000	)		(12,201	)		6,412		7,666,148		769,694		93,903
	$	12,741,451	$	12,600,000	$	(10,000,000	)	$	(34,725	)	$	38,097	$	15,344,823			$	188,314

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value including $437,661 of securities loaned (cost $117,450,650)	$	115,712,731
Investments in affiliated issuers, at value (cost $15,350,840)		15,344,823
Repurchase agreements, at value (cost $31,263,701)		31,263,701
Segregated cash with broker		401,082
Receivables:
Fund shares sold		2,326,271
Dividends		68,445
Variation margin on futures contracts		64,979
Investment Adviser		47,969
Interest		1,974
Securities lending income		84
Total assets		165,232,059
Liabilities:
Unrealized depreciation on OTC swap agreements		710,422
Payable for:
Securities purchased		1,993,429
Return of securities lending collateral		448,799
Management fees		91,774
Fund shares redeemed		85,492
Swap settlement		41,575
Distribution and service fees		26,288
Transfer agent and administrative fees		25,901
Portfolio accounting fees		10,361
Trustees’ fees*		2,525
Miscellaneous		158,581
Total liabilities		3,595,147
Commitments and contingent liabilities (Note 11)		—
Net assets	$	161,636,912
Net assets consist of:
Paid in capital	$	218,532,660
Total distributable earnings (loss)		(56,895,748	)
Net assets	$	161,636,912
A-Class:
Net assets	$	2,445,321
Capital shares outstanding		16,953
Net asset value per share	$	144.24
Maximum offering price per share (Net asset value divided by 95.25%)	$	151.43
C-Class:
Net assets	$	651,234
Capital shares outstanding		4,690
Net asset value per share	$	138.86
H-Class:
Net assets	$	158,540,357
Capital shares outstanding		1,073,537
Net asset value per share	$	147.68

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $755)	$	485,139
Dividends from securities of affiliated issuers		188,314
Interest		317,635
Income from securities lending, net		346
Total investment income		991,434
Expenses:
Management fees		591,643
Distribution and service fees
A-Class		3,383
C-Class		3,006
H-Class		160,211
Transfer agent and administrative fees		164,345
Portfolio accounting fees		65,738
Trustees’ fees*		14,035
Custodian fees		9,529
Line of credit fees		74
Miscellaneous		177,334
Total expenses		1,189,298
Less:
Expenses waived by Adviser		(307,606	)
Net expenses		881,692
Net investment income		109,742
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		5,284,336
Investments in affiliated issuers		(34,725	)
Swap agreements		(2,426,169	)
Futures contracts		661,128
Net realized gain		3,484,570
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(8,486,031	)
Investments in affiliated issuers		38,097
Swap agreements		(1,914,399	)
Futures contracts		(850,352	)
Net change in unrealized appreciation (depreciation)		(11,212,685	)
Net realized and unrealized loss		(7,728,115	)
Net decrease in net assets resulting from operations	$	(7,618,373	)

^* 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 | 53

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	109,742		$	122,242
Net realized gain on investments		3,484,570			29,388,114
Net change in unrealized appreciation (depreciation) on investments		(11,212,685	)		4,693,945
Net increase (decrease) in net assets resulting from operations		(7,618,373	)		34,204,301
Capital share transactions:
Proceeds from sale of shares
A-Class		6,118,618			5,870,473
C-Class		355,127			870,336
H-Class		654,091,881			475,352,789
Cost of shares redeemed
A-Class		(6,704,797	)		(5,265,587	)
C-Class		(221,291	)		(570,711	)
H-Class		(616,291,530	)		(406,018,040	)
Net increase from capital share transactions		37,348,008			70,239,260
Net increase in net assets		29,729,635			104,443,561
Net assets:
Beginning of period		131,907,277			27,463,716
End of period	$	161,636,912		$	131,907,277
Capital share activity:
Shares sold
A-Class		43,790			45,931
C-Class		2,658			7,067
H-Class		4,576,876			3,856,374
Shares redeemed
A-Class		(49,710	)		(40,617	)
C-Class		(1,628	)		(4,951	)
H-Class		(4,434,817	)		(3,142,899	)
Net increase in shares		137,169			720,905

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

MONTHLY REBALANCE NASDAQ-100^® 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	134.54		$	113.31		$	79.32		$	54.45		$	51.68		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		.24			.25			(.23	)		(.18	)		(.27	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		9.46			20.98			34.22			25.05			3.04			1.75
Total from investment operations		9.70			21.23			33.99			24.87			2.77			1.68
Net asset value, end of period	$	144.24		$	134.54		$	113.31		$	79.32		$	54.45		$	51.68
Total Returnd		7.21	%		18.74	%		42.85	%		45.65	%		5.38	%		3.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,445		$	3,077		$	1,990		$	1,010		$	246		$	465
Ratios to average net assets:
Net investment income (loss)		0.34	%		0.19	%		(0.23	%)		(0.28	%)		(0.48	%)		(0.38	%)
Total expensese		1.81	%		1.81	%		1.71	%		1.72	%		1.70	%		1.63	%
Net expensesf,g		1.33	%		1.35	%		1.35	%		1.35	%		1.37	%		1.35	%
Portfolio turnover rate		402	%		467	%		385	%		259	%		551	%		84	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	130.01		$	110.32		$	77.79		$	53.80		$	51.55		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		(.23	)		(.64	)		(1.00	)		(.73	)		(.56	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		9.08			20.33			33.53			24.72			2.81			1.74
Total from investment operations		8.85			19.69			32.53			23.99			2.25			1.55
Net asset value, end of period	$	138.86		$	130.01		$	110.32		$	77.79		$	53.80		$	51.55
Total Returnd		6.81	%		17.85	%		41.82	%		44.52	%		4.40	%		3.10	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	651		$	476		$	170		$	89		$	23		$	14
Ratios to average net assets:
Net investment income (loss)		(0.34	%)		(0.52	%)		(1.02	%)		(1.10	%)		(1.04	%)		(1.13	%)
Total expensese		2.56	%		2.57	%		2.46	%		2.47	%		2.51	%		2.43	%
Net expensesf,g		2.08	%		2.11	%		2.10	%		2.10	%		2.17	%		2.13	%
Portfolio turnover rate		402	%		467	%		385	%		259	%		551	%		84	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015b
Per Share Data
Net asset value, beginning of period	$	137.80		$	116.07		$	81.25		$	55.79		$	51.57		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		.12			.19			(.25	)		(.23	)		(.17	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		9.76			21.54			35.07			25.69			4.39			1.67
Total from investment operations		9.88			21.73			34.82			25.46			4.22			1.57
Net asset value, end of period	$	147.68		$	137.80		$	116.07		$	81.25		$	55.79		$	51.57
Total Return		7.17	%		18.72	%		42.86	%		45.64	%		8.18	%		3.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	158,540		$	128,354		$	25,304		$	28,573		$	4,220		$	342,658
Ratios to average net assets:
Net investment income (loss)		0.17	%		0.15	%		(0.24	%)		(0.35	%)		(0.30	%)		(0.60	%)
Total expensese		1.81	%		1.81	%		1.71	%		1.72	%		1.67	%		1.64	%
Net expensesf,g		1.34	%		1.35	%		1.35	%		1.35	%		1.35	%		1.35	%
Portfolio turnover rate		402	%		467	%		385	%		259	%		551	%		84	%

a	Unaudited figures for the period ended September 30, 2019. 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	Total return does not reflect the impact of any applicable sales charges.
e	Does not include expenses of the underlying funds in which the Fund invests.
f g	Net expense information reflects the expense ratios after expense waivers. Net expenses may include expenses that are excluded from the expense limitation agreement. Excluding these expenses, the operating expense ratios would be:

	09/30/19	03/31/19	03/29/18	03/31/17	03/31/16	03/31/15
A-Class	1.33%	1.35%	1.35%	1.35%	1.35%	1.35%
C-Class	2.08%	2.10%	2.10%	2.10%	2.10%	2.10%
H-Class	1.34%	1.35%	1.35%	1.35%	1.35%	1.35%

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
Investor Class	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 Ultra Short Duration Fund — Institutional Class	23.0%
Guggenheim Strategy Fund II	17.3%
Total	40.3%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 57

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	(4.77%)	(3.98%)	(14.67%)	(17.36%)
A-Class Shares	(4.89%)	(4.24%)	(14.64%)	(17.48%)
A-Class Shares with sales charge‡	(9.40%)	(8.79%)	(15.47%)	(17.88%)
C-Class Shares	(5.24%)	(4.99%)	(15.52%)	(18.21%)
C-Class Shares with CDSC§	(6.19%)	(5.94%)	(15.52%)	(18.21%)
NASDAQ-100 Index	5.59%	2.73%	15.19%	17.58%

	6 Month†	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	(4.88%)	(4.24%)	(14.89%)	(14.61%)
NASDAQ-100 Index	5.59%	2.73%	15.19%	14.79%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

58 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
INVERSE NASDAQ-100® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 40.3%
Guggenheim Ultra Short Duration Fund — Institutional Class1		181,726	$	1,809,990
Guggenheim Strategy Fund II1		54,740		1,359,184
Total Mutual Funds
(Cost $3,163,191)				3,169,174
	Face Amount
FEDERAL AGENCY NOTES†† - 42.2%
Federal Farm Credit Bank
2.15% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/222	$	1,000,000		999,432
2.20% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222		750,000		752,213
1.97% due 08/19/21		630,000		627,386
2.19% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		240,000		240,247
Federal Home Loan Bank
2.01% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 12/18/202		700,000		698,999
Total Federal Agency Notes
(Cost $3,318,897)				3,318,277

	Face Amount		Value
U.S. TREASURY BILLS†† - 4.4%
U.S. Treasury Bills
1.82% due 11/21/193,6	$	320,000	$	319,187
1.93% due 10/29/193,4		23,000		22,966
Total U.S. Treasury Bills
(Cost $342,127)				342,153
REPURCHASE AGREEMENTS††,5 - 12.9%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/196		630,522		630,522
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/196		202,755		202,755
Barclays Capital issued 09/30/19 at 2.00% due 10/01/196		182,479		182,479
Total Repurchase Agreements
(Cost $1,015,756)				1,015,756
Total Investments - 99.8%
(Cost $7,839,971)			$	7,845,360
Other Assets & Liabilities, net - 0.2%				15,867
Total Net Assets - 100.0%			$	7,861,227

Futures Contracts
Description	Number of Contracts	Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Sold Short†
NASDAQ-100 Index Mini Futures Contracts	2	Dec 2019	$	310,710	$	4,470

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive			Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
Goldman Sachs International	NASDAQ-100 Index		(2.16	%)	At Maturity		10/28/19		487	$	3,774,518	$	10,962
Barclays Bank plc	NASDAQ-100 Index		(2.26	%)	At Maturity		10/31/19		387		2,996,292		8,716
BNP Paribas	NASDAQ-100 Index		(2.19	%)	At Maturity		10/29/19		110		851,052		5,939
										$	7,621,862	$	25,617

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
INVERSE NASDAQ-100® STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as futures collateral at September 30, 2019.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	3,169,174	$	—	$	—	$	3,169,174
Federal Agency Notes		—		3,318,277		—		3,318,277
U.S. Treasury Bills		—		342,153		—		342,153
Repurchase Agreements		—		1,015,756		—		1,015,756
Equity Futures Contracts**		4,470		—		—		4,470
Equity Index Swap Agreements**		—		25,617		—		25,617
Total Assets	$	3,173,644	$	4,701,803	$	—	$	7,875,447

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
INVERSE NASDAQ-100® STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	3,007,586	$	—	$	(1,650,000	)	$	(1,673	)	$	3,271		$	1,359,184		54,740	$	24,220
Guggenheim Ultra Short Duration Fund — Institutional Class		2,311,807		—		(500,000	)		500			(2,317	)		1,809,990		181,726		25,857
	$	5,319,393	$	—	$	(2,150,000	)	$	(1,173	)	$	954		$	3,169,174			$	50,077

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $3,661,024)	$	3,660,430
Investments in affiliated issuers, at value (cost $3,163,191)		3,169,174
Repurchase agreements, at value (cost $1,015,756)		1,015,756
Segregated cash with broker		920
Unrealized appreciation on OTC swap agreements		25,617
Receivables:
Dividends		6,317
Interest		5,553
Fund shares sold		25
Total assets		7,883,792
Liabilities:
Payable for:
Management fees		6,182
Registration fees		3,766
Variation margin on futures contracts		2,660
Printing fees		2,423
Professional fees		1,813
Transfer agent and administrative fees		1,813
Portfolio accounting fees		726
Swap settlement		325
Distribution and service fees		316
Trustees’ fees*		178
Miscellaneous		2,363
Total liabilities		22,565
Commitments and contingent liabilities (Note 11)		—
Net assets	$	7,861,227
Net assets consist of:
Paid in capital	$	42,430,001
Total distributable earnings (loss)		(34,568,774	)
Net assets	$	7,861,227
Investor Class:
Net assets	$	6,678,060
Capital shares outstanding		128,162
Net asset value per share	$	52.11
A-Class:
Net assets	$	401,580
Capital shares outstanding		7,964
Net asset value per share	$	50.42
Maximum offering price per share (Net asset value divided by 95.25%)	$	52.93
C-Class:
Net assets	$	145,411
Capital shares outstanding		3,408
Net asset value per share	$	42.67
H-Class:
Net assets	$	636,176
Capital shares outstanding		12,803
Net asset value per share	$	49.69

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

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

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	50,077
Interest		73,019
Total investment income		123,096
Expenses:
Management fees		43,421
Distribution and service fees:
A-Class		709
C-Class		753
H-Class		821
Transfer agent and administrative fees		12,061
Registration fees		7,585
Portfolio accounting fees		4,824
Professional fees		3,986
Trustees’ fees*		1,852
Custodian fees		702
Line of credit fees		56
Miscellaneous		346
Total expenses		77,116
Less:
Expenses waived by Adviser		(2,345	)
Net expenses		74,771
Net investment income		48,325
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	1,859
Investments in affiliated issuers		(1,173	)
Swap agreements		(1,331,179	)
Futures contracts		(28,897	)
Net realized loss		(1,359,390	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		284
Investments in affiliated issuers		954
Swap agreements		96,974
Futures contracts		18,387
Net change in unrealized appreciation (depreciation)		116,599
Net realized and unrealized loss		(1,242,791	)
Net decrease in net assets resulting from operations	$	(1,194,466	)

^* 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 | 63

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	48,325		$	125,954
Net realized loss on investments		(1,359,390	)		(2,817,806	)
Net change in unrealized appreciation (depreciation) on investments		116,599			(288,761	)
Net decrease in net assets resulting from operations		(1,194,466	)		(2,980,613	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		60,410,573			176,343,541
A-Class		923,611			4,974,401
C-Class		92,654			9,340,131
H-Class		6,850,408			71,221,514
Cost of shares redeemed
Investor Class		(59,130,330	)		(173,569,949	)
A-Class		(1,391,003	)		(4,992,757	)
C-Class		(64,628	)		(9,969,595	)
H-Class		(6,411,483	)		(72,385,819	)
Net increase from capital share transactions		1,279,802			961,467
Net increase (decrease) in net assets		85,336			(2,019,146	)
Net assets:
Beginning of period		7,775,891			9,795,037
End of period	$	7,861,227		$	7,775,891
Capital share activity:
Shares sold
Investor Class		1,122,126			2,892,671
A-Class		18,097			83,715
C-Class		2,062			191,511
H-Class		134,617			1,239,869
Shares redeemed
Investor Class		(1,112,262	)		(2,861,185	)
A-Class		(25,880	)		(84,906	)
C-Class		(1,488	)		(205,483	)
H-Class		(128,333	)		(1,273,160	)
Net increase (decrease) in shares		8,939			(16,968	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017g			Year Ended March 31, 2016g			Year Ended March 31, 2015g
Per Share Data
Net asset value, beginning of period	$	54.72		$	63.05		$	77.68		$	96.42		$	105.47		$	132.37
Income (loss) from investment operations:
Net investment income (loss)b		.28			.56			.11			(.51	)		(1.08	)		(1.32	)
Net gain (loss) on investments (realized and unrealized)		(2.89	)		(8.89	)		(14.74	)		(18.23	)		(7.97	)		(25.58	)
Total from investment operations		(2.61	)		(8.33	)		(14.63	)		(18.74	)		(9.05	)		(26.90	)
Net asset value, end of period	$	52.11		$	54.72		$	63.05		$	77.68		$	96.42		$	105.47
Total Return		(4.77	%)		(13.21	%)		(18.83	%)		(19.42	%)		(8.61	%)		(20.31	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,678		$	6,473		$	5,474		$	6,286		$	11,857		$	6,821
Ratios to average net assets:
Net investment income (loss)		1.04	%		0.93	%		0.16	%		(0.57	%)		(1.04	%)		(1.14	%)
Total expensesc		1.55	%		1.56	%		1.46	%		1.46	%		1.44	%		1.46	%
Net expensesd		1.50	%		1.54	%		1.46	%		1.46	%		1.44	%		1.46	%
Portfolio turnover rate		16	%		38	%		—			486	%		1,674	%		149	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017g			Year Ended March 31, 2016g			Year Ended March 31, 2015g
Per Share Data
Net asset value, beginning of period	$	53.01		$	61.24		$	75.63		$	94.01		$	101.76		$	127.98
Income (loss) from investment operations:
Net investment income (loss)b		.22			.41			(.08	)		(1.00	)		(1.32	)		(1.48	)
Net gain (loss) on investments (realized and unrealized)		(2.81	)		(8.64	)		(14.31	)		(17.38	)		(6.43	)		(24.74	)
Total from investment operations		(2.59	)		(8.23	)		(14.39	)		(18.38	)		(7.75	)		(26.22	)
Net asset value, end of period	$	50.42		$	53.01		$	61.24		$	75.63		$	94.01		$	101.76
Total Returne		(4.89	%)		(13.44	%)		(19.03	%)		(19.54	%)		(7.63	%)		(20.50	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	402		$	835		$	1,037		$	2,626		$	54,948		$	570
Ratios to average net assets:
Net investment income (loss)		0.86	%		0.72	%		(0.12	%)		(1.08	%)		(1.36	%)		(1.35	%)
Total expensesc		1.80	%		1.81	%		1.72	%		1.70	%		1.69	%		1.71	%
Net expensesd		1.74	%		1.79	%		1.72	%		1.70	%		1.69	%		1.71	%
Portfolio turnover rate		16	%		38	%		—			486	%		1,674	%		149	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017g			Year Ended March 31, 2016g			Year Ended March 31, 2015g
Per Share Data
Net asset value, beginning of period	$	45.03		$	52.43		$	65.23		$	81.79		$	90.32		$	114.51
Income (loss) from investment operations:
Net investment income (loss)b		.02			(.06	)		(.48	)		(1.14	)		(1.80	)		(2.12	)
Net gain (loss) on investments (realized and unrealized)		(2.38	)		(7.34	)		(12.32	)		(15.42	)		(6.73	)		(22.07	)
Total from investment operations		(2.36	)		(7.40	)		(12.80	)		(16.56	)		(8.53	)		(24.19	)
Net asset value, end of period	$	42.67		$	45.03		$	52.43		$	65.23		$	81.79		$	90.32
Total Returne		(5.24	%)		(14.11	%)		(19.62	%)		(20.26	%)		(9.43	%)		(21.13	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	145		$	128		$	881		$	1,247		$	1,457		$	998
Ratios to average net assets:
Net investment income (loss)		0.08	%		(0.13	%)		(0.84	%)		(1.51	%)		(2.09	%)		(2.12	%)
Total expensesc		2.55	%		2.53	%		2.46	%		2.46	%		2.44	%		2.46	%
Net expensesd		2.50	%		2.53	%		2.46	%		2.46	%		2.44	%		2.46	%
Portfolio turnover rate		16	%		38	%		—			486	%		1,674	%		149	%

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017g			Year Ended March 31, 2016g			Period Ended March 31, 2015f,g
Per Share Data
Net asset value, beginning of period	$	52.24		$	60.37		$	74.56		$	92.82		$	101.76		$	110.00
Income (loss) from investment operations:
Net investment income (loss)b		.20			.37			.07			(.86	)		(1.16	)		(.80	)
Net gain (loss) on investments (realized and unrealized)		(2.75	)		(8.50	)		(14.26	)		(17.40	)		(7.78	)		(7.44	)
Total from investment operations		(2.55	)		(8.13	)		(14.19	)		(18.26	)		(8.94	)		(8.24	)
Net asset value, end of period	$	49.69		$	52.24		$	60.37		$	74.56		$	92.82		$	101.76
Total Return		(4.88	%)		(13.47	%)		(19.03	%)		(19.65	%)		(8.80	%)		(7.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	636		$	341		$	2,403		$	460		$	252		$	335
Ratios to average net assets:
Net investment income (loss)		0.80	%		0.63	%		0.11	%		(0.95	%)		(1.18	%)		(1.35	%)
Total expensesc		1.80	%		1.81	%		1.71	%		1.70	%		1.70	%		1.68	%
Net expensesd		1.75	%		1.79	%		1.71	%		1.70	%		1.70	%		1.68	%
Portfolio turnover rate		16	%		38	%		—			486	%		1,674	%		149	%

a	Unaudited figures for the period ended September 30, 2019. 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	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Total return does not reflect the impact of any applicable sales charges.
f	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
g	Reverse share split — Per share amounts for the periods presented through March 31, 2017, have been restated to reflect a 1:4 reverse share split effective November 4, 2016.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	March 31, 2004
C-Class	August 20, 2001
H-Class	August 16, 2001

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	29.7%
Guggenheim Ultra Short Duration Fund — Institutional Class	25.2%
STERIS plc	0.1%
Teledyne Technologies, Inc.	0.1%
Zebra Technologies Corp. — Class A	0.1%
Alleghany Corp.	0.1%
Old Dominion Freight Line, Inc.	0.1%
Camden Property Trust	0.1%
West Pharmaceutical Services, Inc.	0.1%
UGI Corp.	0.1%
Top Ten Total	55.7%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	2.29%	(8.01%)	10.18%	15.57%
A-Class Shares with sales charge‡	(2.57%)	(12.38%)	9.12%	15.01%
C-Class Shares	1.90%	(8.70%)	9.37%	14.73%
C-Class Shares with CDSC§	0.90%	(9.60%)	9.37%	14.73%
H-Class Shares	2.28%	(8.11%)	10.24%	15.62%
S&P MidCap 400 Index	2.96%	(2.49%)	8.88%	12.56%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 67

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 7.0%
Financial - 1.9%
Alleghany Corp.*		9	$	7,180
Camden Property Trust REIT		62		6,883
WR Berkley Corp.		93		6,717
Reinsurance Group of America, Inc. — Class A		40		6,395
National Retail Properties, Inc. REIT		111		6,260
Omega Healthcare Investors, Inc. REIT		140		5,851
CyrusOne, Inc. REIT		73		5,774
Medical Properties Trust, Inc. REIT		288		5,633
Brown & Brown, Inc.		151		5,445
RenaissanceRe Holdings Ltd.		28		5,416
Liberty Property Trust REIT		102		5,236
American Financial Group, Inc.		48		5,177
SEI Investments Co.		82		4,859
Kilroy Realty Corp. REIT		60		4,673
Jones Lang LaSalle, Inc.		33		4,589
Douglas Emmett, Inc. REIT		106		4,540
Lamar Advertising Co. — Class A REIT		55		4,506
Old Republic International Corp.		184		4,337
American Campus Communities, Inc. REIT		89		4,279
First American Financial Corp.		72		4,249
Signature Bank		35		4,173
East West Bancorp, Inc.		94		4,163
Brixmor Property Group, Inc. REIT		192		3,896
Commerce Bancshares, Inc.		64		3,882
Park Hotels & Resorts, Inc. REIT		155		3,870
EPR Properties REIT		50		3,843
New York Community Bancorp, Inc.		301		3,778
TCF Financial Corp.		99		3,769
Cousins Properties, Inc. REIT		95		3,571
Synovus Financial Corp.		99		3,540
Hanover Insurance Group, Inc.		26		3,524
Primerica, Inc.		27		3,435
Eaton Vance Corp.		73		3,280
Cullen/Frost Bankers, Inc.		37		3,277
First Horizon National Corp.		201		3,256
First Industrial Realty Trust, Inc. REIT		82		3,244
Prosperity Bancshares, Inc.		45		3,178
Life Storage, Inc. REIT		30		3,162
Kemper Corp.		40		3,118
Highwoods Properties, Inc. REIT		67		3,011
EastGroup Properties, Inc. REIT		24		3,001
Jefferies Financial Group, Inc.		163		2,999
JBG SMITH Properties REIT		76		2,980
First Financial Bankshares, Inc.		88		2,933
CoreSite Realty Corp. REIT		24		2,924
Brighthouse Financial, Inc.*		72		2,914
Selective Insurance Group, Inc.		38		2,857
Sabra Health Care REIT, Inc.		122		2,801
Healthcare Realty Trust, Inc. REIT		83		2,781
Spirit Realty Capital, Inc. REIT		58		2,776
Webster Financial Corp.		59		2,765
PacWest Bancorp		76		2,762
Service Properties Trust REIT		106		2,734
Pinnacle Financial Partners, Inc.		47		2,667
Sterling Bancorp		132		2,648
Interactive Brokers Group, Inc. — Class A		49		2,635
Stifel Financial Corp.		45		2,582
United Bankshares, Inc.		66		2,500
SLM Corp.		275		2,427
FNB Corp.		209		2,410
Wintrust Financial Corp.		37		2,391
Rayonier, Inc. REIT		84		2,369
PS Business Parks, Inc. REIT		13		2,365
Umpqua Holdings Corp.		142		2,337
Pebblebrook Hotel Trust REIT		84		2,337
Valley National Bancorp		214		2,326
Janus Henderson Group plc		103		2,313
Weingarten Realty Investors REIT		78		2,272
Bank of Hawaii Corp.		26		2,234
Hancock Whitney Corp.		58		2,221
Corporate Office Properties Trust REIT		72		2,144
Bank OZK		78		2,127
Associated Banc-Corp.		105		2,126
Evercore, Inc. — Class A		26		2,083
Legg Mason, Inc.		53		2,024
Federated Investors, Inc. — Class B		62		2,009
Washington Federal, Inc.		51		1,886
Home BancShares, Inc.		100		1,880
UMB Financial Corp.		28		1,808
BancorpSouth Bank		60		1,777
PotlatchDeltic Corp. REIT		43		1,767
Texas Capital Bancshares, Inc.*		32		1,749
Fulton Financial Corp.		107		1,731
Cathay General Bancorp		49		1,702
Navient Corp.		131		1,677
CNO Financial Group, Inc.		101		1,599
Taubman Centers, Inc. REIT		39		1,592
LendingTree, Inc.*		5		1,552
Urban Edge Properties REIT		74		1,464
Trustmark Corp.		42		1,433
International Bancshares Corp.		37		1,429
Genworth Financial, Inc. — Class A*		324		1,426
Senior Housing Properties Trust REIT		153		1,416
Deluxe Corp.		28		1,377
GEO Group, Inc. REIT		78		1,353
CoreCivic, Inc. REIT		77		1,331
Mack-Cali Realty Corp. REIT		58		1,256
Alexander & Baldwin, Inc. REIT		44		1,078
Uniti Group, Inc. REIT		125		971
Mercury General Corp.		17		950
Tanger Factory Outlet Centers, Inc. REIT		60		929
Total Financial				306,876
Industrial - 1.4%
Teledyne Technologies, Inc.*		23		7,406
Old Dominion Freight Line, Inc.		41		6,969
Trimble, Inc.*		162		6,287
Lennox International, Inc.		23		5,588
Cognex Corp.		110		5,404
Carlisle Companies, Inc.		36		5,239

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Graco, Inc.		108	$	4,972
AptarGroup, Inc.		41		4,856
Nordson Corp.		33		4,827
Hubbell, Inc.		35		4,599
Universal Display Corp.		27		4,533
Gentex Corp.		164		4,516
Owens Corning		70		4,424
Donaldson Company, Inc.		82		4,271
XPO Logistics, Inc.*		59		4,223
Arrow Electronics, Inc.*		54		4,027
Genesee & Wyoming, Inc. — Class A*		36		3,978
Woodward, Inc.		36		3,882
AECOM*		102		3,831
Sonoco Products Co.		65		3,783
Curtiss-Wright Corp.		28		3,622
MDU Resources Group, Inc.		128		3,608
Acuity Brands, Inc.		26		3,505
ITT, Inc.		57		3,488
Lincoln Electric Holdings, Inc.		40		3,470
Trex Company, Inc.*		38		3,456
Oshkosh Corp.		44		3,335
National Instruments Corp.		77		3,233
Jabil, Inc.		90		3,219
Kirby Corp.*		39		3,204
AGCO Corp.		41		3,104
EMCOR Group, Inc.		36		3,100
Tetra Tech, Inc.		35		3,037
Stericycle, Inc.*		59		3,005
Avnet, Inc.		67		2,981
SYNNEX Corp.		26		2,935
Landstar System, Inc.		26		2,927
Knight-Swift Transportation Holdings, Inc.		79		2,868
Littelfuse, Inc.		16		2,837
Crane Co.		33		2,661
Clean Harbors, Inc.*		33		2,547
MasTec, Inc.*		39		2,532
MSA Safety, Inc.		23		2,510
Eagle Materials, Inc.		27		2,430
Tech Data Corp.*		23		2,398
Coherent, Inc.*		15		2,306
KBR, Inc.		91		2,233
nVent Electric plc		100		2,204
Axon Enterprise, Inc.*		38		2,158
II-VI, Inc.*		56		1,972
Regal Beloit Corp.		27		1,967
Louisiana-Pacific Corp.		80		1,967
Valmont Industries, Inc.		14		1,938
Timken Co.		44		1,915
Energizer Holdings, Inc.		41		1,787
GATX Corp.		23		1,783
EnerSys		27		1,780
Ryder System, Inc.		34		1,760
Fluor Corp.		90		1,722
Kennametal, Inc.		53		1,629
Colfax Corp.*		54		1,569
Silgan Holdings, Inc.		50		1,502
Vishay Intertechnology, Inc.		85		1,439
Belden, Inc.		25		1,333
Trinity Industries, Inc.		66		1,299
Terex Corp.		42		1,091
Owens-Illinois, Inc.		100		1,027
Werner Enterprises, Inc.		29		1,024
Dycom Industries, Inc.*		20		1,021
Granite Construction, Inc.		30		964
Worthington Industries, Inc.		24		865
Greif, Inc. — Class A		17		644
Total Industrial				216,526
Consumer, Non-cyclical - 1.1%
STERIS plc		55		7,947
West Pharmaceutical Services, Inc.		48		6,807
WEX, Inc.*		28		5,658
Service Corporation International		118		5,642
Bio-Techne Corp.		25		4,892
Masimo Corp.*		32		4,761
Bio-Rad Laboratories, Inc. — Class A*		14		4,658
Post Holdings, Inc.*		44		4,657
Hill-Rom Holdings, Inc.		43		4,525
Catalent, Inc.*		94		4,480
Molina Healthcare, Inc.*		40		4,389
Chemed Corp.		10		4,176
Haemonetics Corp.*		33		4,163
Charles River Laboratories International, Inc.*		31		4,103
Encompass Health Corp.		64		4,050
PRA Health Sciences, Inc.*		40		3,969
Sabre Corp.		176		3,942
Ingredion, Inc.		43		3,515
Exelixis, Inc.*		195		3,449
ManpowerGroup, Inc.		39		3,285
Flowers Foods, Inc.		124		2,868
Aaron’s, Inc.		44		2,827
Penumbra, Inc.*,1		21		2,824
Integra LifeSciences Holdings Corp.*		46		2,763
Amedisys, Inc.*		21		2,751
Brink’s Co.		32		2,654
HealthEquity, Inc.*		46		2,629
Helen of Troy Ltd.*		16		2,522
Globus Medical, Inc. — Class A*		49		2,505
Insperity, Inc.		25		2,465
CoreLogic, Inc.*		52		2,406
Repligen Corp.*		30		2,301
LivaNova plc*		31		2,288
United Therapeutics Corp.*		28		2,233
Boston Beer Company, Inc. — Class A*		6		2,185
NuVasive, Inc.*		34		2,155
ASGN, Inc.*		34		2,137
Syneos Health, Inc.*		40		2,128
TreeHouse Foods, Inc.*		36		1,996
Graham Holdings Co. — Class B		3		1,990
Sanderson Farms, Inc.		13		1,967
ICU Medical, Inc.*		12		1,915
LiveRamp Holdings, Inc.*		44		1,890

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Lancaster Colony Corp.		13	$	1,802
Cantel Medical Corp.		24		1,795
Acadia Healthcare Company, Inc.*		57		1,772
Tenet Healthcare Corp.*		67		1,482
Sprouts Farmers Market, Inc.*		76		1,470
Adtalem Global Education, Inc.*		35		1,333
MEDNAX, Inc.*		54		1,222
Sotheby’s*		21		1,197
Ligand Pharmaceuticals, Inc. — Class B*		12		1,194
Healthcare Services Group, Inc.		48		1,166
Avanos Medical, Inc.*		31		1,161
Edgewell Personal Care Co.*		35		1,137
WW International, Inc.*		30		1,135
Hain Celestial Group, Inc.*		52		1,117
Prestige Consumer Healthcare, Inc.*		32		1,110
Pilgrim’s Pride Corp.*		34		1,090
Avis Budget Group, Inc.*		38		1,074
Patterson Companies, Inc.		55		980
Green Dot Corp. — Class A*		31		783
Tootsie Roll Industries, Inc.		11		409
Spectrum Brands Holdings, Inc.		4		215
Total Consumer, Non-cyclical				172,111
Consumer, Cyclical - 0.9%
Domino’s Pizza, Inc.		27		6,604
Live Nation Entertainment, Inc.*		90		5,971
Pool Corp.		26		5,244
Toro Co.		69		5,058
Five Below, Inc.*		36		4,540
Dunkin’ Brands Group, Inc.		53		4,206
Caesars Entertainment Corp.*		358		4,174
Casey’s General Stores, Inc.		24		3,868
Watsco, Inc.		21		3,553
Toll Brothers, Inc.		83		3,407
Williams-Sonoma, Inc.		50		3,399
Polaris, Inc.		37		3,256
Skechers U.S.A., Inc. — Class A*		86		3,212
Wyndham Hotels & Resorts, Inc.		62		3,208
JetBlue Airways Corp.*		191		3,199
Foot Locker, Inc.		71		3,064
Brunswick Corp.		55		2,867
Churchill Downs, Inc.		23		2,840
Deckers Outdoor Corp.*		19		2,800
Wyndham Destinations, Inc.		59		2,715
Cinemark Holdings, Inc.		69		2,666
Carter’s, Inc.		29		2,645
Cracker Barrel Old Country Store, Inc.		16		2,602
Six Flags Entertainment Corp.		51		2,590
Marriott Vacations Worldwide Corp.		25		2,590
FirstCash, Inc.		28		2,567
Scotts Miracle-Gro Co. — Class A		25		2,545
Mattel, Inc.*,1		223		2,540
Wendy’s Co.		119		2,378
Tempur Sealy International, Inc.*		30		2,316
Texas Roadhouse, Inc. — Class A		42		2,206
Goodyear Tire & Rubber Co.		150		2,161
KAR Auction Services, Inc.		86		2,111
MSC Industrial Direct Company, Inc. — Class A		29		2,103
Ollie’s Bargain Outlet Holdings, Inc.*		35		2,052
Thor Industries, Inc.		35		1,982
AutoNation, Inc.*		38		1,927
KB Home		55		1,870
Herman Miller, Inc.		38		1,751
Dick’s Sporting Goods, Inc.		42		1,714
World Fuel Services Corp.		42		1,677
Eldorado Resorts, Inc.*,1		42		1,675
American Eagle Outfitters, Inc.		102		1,654
Jack in the Box, Inc.		17		1,549
Nu Skin Enterprises, Inc. — Class A		36		1,531
Visteon Corp.*		18		1,486
TRI Pointe Group, Inc.*		92		1,384
Dana, Inc.		93		1,343
Penn National Gaming, Inc.*		70		1,304
Adient plc		56		1,286
Urban Outfitters, Inc.*		45		1,264
Boyd Gaming Corp.		52		1,246
Sally Beauty Holdings, Inc.*		78		1,161
Resideo Technologies, Inc.*		79		1,134
Cheesecake Factory, Inc.		26		1,084
Brinker International, Inc.		24		1,024
HNI Corp.		28		994
Bed Bath & Beyond, Inc.		82		873
Delphi Technologies plc		56		750
Papa John’s International, Inc.1		14		733
Scientific Games Corp. — Class A*		35		712
International Speedway Corp. — Class A		15		675
Dillard’s, Inc. — Class A1		7		463
Total Consumer, Cyclical				149,503
Technology - 0.6%
Zebra Technologies Corp. — Class A*		35		7,223
Tyler Technologies, Inc.*		25		6,563
Teradyne, Inc.		110		6,370
Fair Isaac Corp.*		19		5,767
Cypress Semiconductor Corp.		238		5,555
PTC, Inc.*		67		4,568
Monolithic Power Systems, Inc.		26		4,046
CDK Global, Inc.		78		3,751
CACI International, Inc. — Class A*		16		3,700
Medidata Solutions, Inc.*		40		3,660
Cree, Inc.*		69		3,381
Manhattan Associates, Inc.*		41		3,307
MKS Instruments, Inc.		35		3,230
MAXIMUS, Inc.		41		3,168
Silicon Laboratories, Inc.*		28		3,118
Blackbaud, Inc.		32		2,891
Science Applications International Corp.		32		2,795
j2 Global, Inc.		30		2,725
Lumentum Holdings, Inc.*		50		2,678
NCR Corp.*		78		2,462
ACI Worldwide, Inc.*		75		2,349
Perspecta, Inc.		89		2,325
Teradata Corp.*		74		2,294

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Semtech Corp.*		43	$	2,090
Cirrus Logic, Inc.*		37		1,982
CommVault Systems, Inc.*		27		1,207
Allscripts Healthcare Solutions, Inc.*		107		1,175
NetScout Systems, Inc.*		43		991
Synaptics, Inc.*		21		839
Covetrus, Inc.*		63		749
Total Technology				96,959
Basic Materials - 0.3%
RPM International, Inc.		84		5,780
Royal Gold, Inc.		42		5,175
Reliance Steel & Aluminum Co.		43		4,285
Steel Dynamics, Inc.		142		4,232
Versum Materials, Inc.		70		3,705
Ashland Global Holdings, Inc.		39		3,005
Valvoline, Inc.		121		2,666
NewMarket Corp.		5		2,360
Ingevity Corp.*		27		2,291
Olin Corp.		106		1,984
Sensient Technologies Corp.		27		1,854
Cabot Corp.		37		1,677
Allegheny Technologies, Inc.*		81		1,640
PolyOne Corp.		50		1,632
Carpenter Technology Corp.		31		1,601
Chemours Co.		105		1,569
Domtar Corp.		40		1,432
Commercial Metals Co.		76		1,321
United States Steel Corp.		110		1,271
Compass Minerals International, Inc.		22		1,243
Minerals Technologies, Inc.		23		1,221
Total Basic Materials				51,944
Utilities - 0.3%
UGI Corp.		135		6,786
Aqua America, Inc.		139		6,231
OGE Energy Corp.		129		5,854
IDACORP, Inc.		32		3,605
ONE Gas, Inc.		34		3,268
Hawaiian Electric Industries, Inc.		70		3,193
Southwest Gas Holdings, Inc.		35		3,186
Black Hills Corp.		39		2,992
ALLETE, Inc.		33		2,885
Spire, Inc.		33		2,879
PNM Resources, Inc.		51		2,656
National Fuel Gas Co.		56		2,628
New Jersey Resources Corp.		58		2,623
NorthWestern Corp.		33		2,477
Total Utilities				51,263
Communications - 0.3%
FactSet Research Systems, Inc.		25		6,074
Etsy, Inc.*		78		4,407
Ciena Corp.*		100		3,923
Cable One, Inc.		3		3,764
GrubHub, Inc.*		59		3,316
ViaSat, Inc.*		37		2,787
New York Times Co. — Class A		93		2,649
LogMeIn, Inc.		32		2,271
World Wrestling Entertainment, Inc. — Class A		31		2,206
TEGNA, Inc.		140		2,174
Telephone & Data Systems, Inc.		63		1,625
Yelp, Inc. — Class A*		42		1,460
AMC Networks, Inc. — Class A*		28		1,377
John Wiley & Sons, Inc. — Class A		28		1,230
InterDigital, Inc.		20		1,049
Meredith Corp.		26		953
Plantronics, Inc.		21		784
Total Communications				42,049
Energy - 0.2%
WPX Energy, Inc.*		272		2,880
First Solar, Inc.*		49		2,843
Murphy Oil Corp.		99		2,189
Equitrans Midstream Corp.		132		1,920
PBF Energy, Inc. — Class A		66		1,794
Equities Corp.		165		1,756
Transocean Ltd.*		371		1,658
Murphy USA, Inc.*		19		1,621
Apergy Corp.*		50		1,353
Core Laboratories N.V.		29		1,352
Antero Midstream Corp.		167		1,236
Matador Resources Co.*		71		1,174
Patterson-UTI Energy, Inc.		131		1,120
Chesapeake Energy Corp.*		727		1,025
CNX Resources Corp.*		121		878
Oceaneering International, Inc.*		64		867
NOW, Inc.*		70		803
Southwestern Energy Co.*		349		674
Oasis Petroleum, Inc.*		187		647
Total Energy				27,790
Total Common Stocks
(Cost $1,073,456)				1,115,021
MUTUAL FUNDS† - 54.9%
Guggenheim Strategy Fund II2		192,369		4,776,521
Guggenheim Ultra Short Duration Fund — Institutional Class2		406,995		4,053,669
Total Mutual Funds
(Cost $8,859,835)				8,830,190

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
MID-CAP 1.5x STRATEGY FUND

	Face Amount		Value
FEDERAL AGENCY NOTES†† - 6.2%
Federal Farm Credit Bank
2.15% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/223	$	1,000,000	$	999,432
Total Federal Agency Notes
(Cost $1,000,000)				999,432
U.S. TREASURY BILLS†† - 5.8%
U.S. Treasury Bills
1.82% due 11/21/194		571,000		569,549
1.77% due 11/21/194		300,000		299,238
1.93% due 10/29/194,5		55,000		54,920
Total U.S. Treasury Bills
(Cost $923,669)				923,707
REPURCHASE AGREEMENTS††,6 - 23.7%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/197		2,364,890		2,364,890
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/197		760,470		760,470
Barclays Capital issued 09/30/19 at 2.00% due 10/01/197		684,423		684,423
Total Repurchase Agreements
(Cost $3,809,783)				3,809,783

	Shares		Value
SECURITIES LENDING COLLATERAL†,8 - 0.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%9		6,079	$	6,079
Total Securities Lending Collateral
(Cost $6,079)				6,079
Total Investments - 97.6%
(Cost $15,672,822)			$	15,684,212
Other Assets & Liabilities, net - 2.4%				390,328
Total Net Assets - 100.0%			$	16,074,540

Futures Contracts
Description	Number of Contracts	Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Purchased†
S&P MidCap 400 Index Mini Futures Contracts	2	Dec 2019	$	387,640	$	(2,534	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay			Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
Goldman Sachs International	S&P MidCap 400 Index		2.31	%	At Maturity		10/28/19		4,436	$	8,585,886	$	(3,273	)
Barclays Bank plc	S&P MidCap 400 Index		2.26	%	At Maturity		10/31/19		4,342		8,404,367		(6,470	)
BNP Paribas	S&P MidCap 400 Index		2.49	%	At Maturity		10/29/19		2,911		5,633,947		(34,784	)
										$	22,624,200	$	(44,527	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
MID-CAP 1.5x STRATEGY FUND

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Affiliated issuer.
3	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
4	Rate indicated is the effective yield at the time of purchase.
5	All or a portion of this security is pledged as futures collateral at September 30, 2019.
6	Repurchase Agreements — See Note 6.
7	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
8	Securities lending collateral — See Note 7.
9	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	1,115,021	$	—	$	—	$	1,115,021
Mutual Funds		8,830,190		—		—		8,830,190
Federal Agency Notes		—		999,432		—		999,432
U.S. Treasury Bills		—		923,707		—		923,707
Repurchase Agreements		—		3,809,783		—		3,809,783
Securities Lending Collateral		6,079		—		—		6,079
Total Assets	$	9,951,290	$	5,732,922	$	—	$	15,684,212

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	2,534	$	—	$	—	$	2,534
Equity Index Swap Agreements**		—		44,527		—		44,527
Total Liabilities	$	2,534	$	44,527	$	—	$	47,061

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
MID-CAP 1.5x STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	4,772,674	$	—	$	—	$	—	$	3,847		$	4,776,521		192,369	$	65,686
Guggenheim Ultra Short Duration Fund — Institutional Class		4,057,739		—		—		—		(4,070	)		4,053,669		406,995		56,343
	$	8,830,413	$	—	$	—	$	—	$	(223	)	$	8,830,190			$	122,029

74 | 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, 2019

Assets:
Investments in unaffiliated issuers, at value - including $6,076 of securities loaned (cost $3,003,204)	$	3,044,239
Investments in affiliated issuers, at value (cost $8,859,835)		8,830,190
Repurchase agreements, at value (cost $3,809,783)		3,809,783
Cash		10
Segregated cash with broker		42,408
Receivables:
Fund shares sold		485,394
Dividends		18,502
Swap settlement		7,168
Variation margin on futures contracts		2,700
Interest		2,297
Securities lending income		12
Total assets		16,242,703
Liabilities:
Unrealized depreciation on OTC swap agreements		44,527
Payable for:
Fund shares redeemed		78,211
Management fees		10,054
Return of securities lending collateral		6,079
Distribution and service fees		5,098
Transfer agent and administrative fees		3,009
Portfolio accounting fees		1,203
Trustees’ fees*		330
Miscellaneous		19,652
Total liabilities		168,163
Commitments and contingent liabilities (Note 11)		—
Net assets	$	16,074,540
Net assets consist of:
Paid in capital	$	26,402,371
Total distributable earnings (loss)		(10,327,831	)
Net assets	$	16,074,540
A-Class:
Net assets	$	2,490,291
Capital shares outstanding		27,105
Net asset value per share	$	91.88
Maximum offering price per share (Net asset value divided by 95.25%)	$	96.46
C-Class:
Net assets	$	3,633,600
Capital shares outstanding		45,797
Net asset value per share	$	79.34
H-Class:
Net assets	$	9,950,649
Capital shares outstanding		107,877
Net asset value per share	$	92.24

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $4)	$	7,998
Dividends from securities of affiliated issuers		122,029
Interest		92,117
Income from securities lending, net		36
Total investment income		222,180
Expenses:
Management fees		80,029
Distribution and service fees:
A-Class		3,693
C-Class		18,243
H-Class		13,976
Transfer agent and administrative fees		22,230
Portfolio accounting fees		8,892
Registration fees		8,783
Trustees’ fees*		2,464
Custodian fees		1,266
Miscellaneous		11,127
Total expenses		170,703
Less:
Expenses waived by Adviser		(5,084	)
Net expenses		165,619
Net investment income		56,561
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		2,487
Swap agreements		626,774
Futures contracts		(101,923	)
Net realized gain		527,338
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		41,419
Investments in affiliated issuers		(223	)
Swap agreements		(355,904	)
Futures contracts		(38,657	)
Net change in unrealized appreciation (depreciation)		(353,365	)
Net realized and unrealized gain		173,973
Net increase in net assets resulting from operations	$	230,534

^* 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 | 75

MID-CAP 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	56,561		$	221,832
Net realized gain (loss) on investments		527,338			(11,469,654	)
Net change in unrealized appreciation (depreciation) on investments		(353,365	)		543,840
Net increase (decrease) in net assets resulting from operations		230,534			(10,703,982	)
Distributions to shareholders:
A-Class		—			(17,300	)
C-Class		—			(20,379	)
H-Class		—			(714,618	)
Total distributions to shareholders		—			(752,297	)
Capital share transactions:
Proceeds from sale of shares
A-Class		230,819			2,971,226
C-Class		54,564			141,109
H-Class		41,230,631			475,373,044
Distributions reinvested
A-Class		—			17,188
C-Class		—			20,268
H-Class		—			206,077
Cost of shares redeemed
A-Class		(1,271,391	)		(1,816,063	)
C-Class		(213,065	)		(2,380,353	)
H-Class		(45,396,538	)		(464,080,804	)
Net increase (decrease) from capital share transactions		(5,364,980	)		10,451,692
Net decrease in net assets		(5,134,446	)		(1,004,587	)
Net assets:
Beginning of period		21,208,986			22,213,573
End of period	$	16,074,540		$	21,208,986
Capital share activity:
Shares sold
A-Class		2,513			31,646
C-Class		688			1,782
H-Class		453,456			5,641,695
Shares issued from reinvestment of distributions
A-Class		—			210
C-Class		—			285
H-Class		—			2,500
Shares redeemed
A-Class		(14,033	)		(19,592	)
C-Class		(2,696	)		(28,644	)
H-Class		(501,018	)		(5,642,422	)
Net decrease in shares		(61,090	)		(12,540	)

76 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	89.82		$	90.38		$	79.90		$	61.64		$	67.32		$	58.48
Income (loss) from investment operations:
Net investment income (loss)b		.36			.58			.15			(.09	)		(.47	)		(.41	)
Net gain (loss) on investments (realized and unrealized)		1.70			(.73	)		10.83			18.50			(4.81	)		9.45
Total from investment operations		2.06			(.15	)		10.98			18.41			(5.28	)		9.04
Less distributions from:
Net investment income		—			(.11	)		—			—			—			—
Net realized gains		—			(.30	)		(.50	)		(.15	)		(.40	)		(.20	)
Total distributions		—			(.41	)		(.50	)		(.15	)		(.40	)		(.20	)
Net asset value, end of period	$	91.88		$	89.82		$	90.38		$	79.90		$	61.64		$	67.32
Total Returnc		2.29	%		(0.11	%)		13.74	%		29.88	%		(7.86	%)		15.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,490		$	3,469		$	2,382		$	1,935		$	1,879		$	5,330
Ratios to average net assets:
Net investment income (loss)		0.79	%		0.64	%		0.17	%		(0.13	%)		(0.75	%)		(0.66	%)
Total expensesd		1.76	%		1.77	%		1.67	%		1.68	%		1.65	%		1.64	%
Net expensese		1.71	%		1.75	%		1.67	%		1.68	%		1.65	%		1.64	%
Portfolio turnover rate		1	%		721	%		722	%		1,216	%		1,506	%		598	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	77.86		$	78.99		$	70.42		$	54.73		$	60.27		$	52.77
Income (loss) from investment operations:
Net investment income (loss)b		.01			(.09	)		(.51	)		(.65	)		(.78	)		(.76	)
Net gain (loss) on investments (realized and unrealized)		1.47			(.63	)		9.58			16.49			(4.36	)		8.46
Total from investment operations		1.48			(.72	)		9.07			15.84			(5.14	)		7.70
Less distributions from:
Net investment income		—			(.11	)		—			—			—			—
Net realized gains		—			(.30	)		(.50	)		(.15	)		(.40	)		(.20	)
Total distributions		—			(.41	)		(.50	)		(.15	)		(.40	)		(.20	)
Net asset value, end of period	$	79.34		$	77.86		$	78.99		$	70.42		$	54.73		$	60.27
Total Returnc		1.90	%		(0.86	%)		12.89	%		28.94	%		(8.55	%)		14.63	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,634		$	3,722		$	5,875		$	7,720		$	4,794		$	4,615
Ratios to average net assets:
Net investment income (loss)		0.03	%		(0.12	%)		(0.68	%)		(1.05	%)		(1.41	%)		(1.39	%)
Total expensesd		2.52	%		2.51	%		2.43	%		2.42	%		2.40	%		2.40	%
Net expensese		2.46	%		2.50	%		2.43	%		2.42	%		2.40	%		2.40	%
Portfolio turnover rate		1	%		721	%		722	%		1,216	%		1,506	%		598	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	90.18		$	90.82		$	80.23		$	61.85		$	67.45		$	58.56
Income (loss) from investment operations:
Net investment income (loss)b		.36			.42			.35			(.37	)		(.57	)		(.29	)
Net gain (loss) on investments (realized and unrealized)		1.70			(.65	)		10.74			18.90			(4.63	)		9.38
Total from investment operations		2.06			(.23	)		11.09			18.53			(5.20	)		9.09
Less distributions from:
Net investment income		—			(.11	)		—			—			—			—
Net realized gains		—			(.30	)		(.50	)		(.15	)		(.40	)		(.20	)
Total distributions		—			(.41	)		(.50	)		(.15	)		(.40	)		(.20	)
Net asset value, end of period	$	92.24		$	90.18		$	90.82		$	80.23		$	61.85		$	67.45
Total Return		2.28	%		(0.21	%)		13.82	%		29.97	%		(7.73	%)		15.56	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,951		$	14,017		$	13,956		$	20,071		$	13,611		$	16,433
Ratios to average net assets:
Net investment income (loss)		0.79	%		0.49	%		0.39	%		(0.50	%)		(0.93	%)		(0.47	%)
Total expensesd		1.76	%		1.78	%		1.66	%		1.68	%		1.66	%		1.66	%
Net expensese		1.71	%		1.77	%		1.66	%		1.68	%		1.66	%		1.66	%
Portfolio turnover rate		1	%		721	%		722	%		1,216	%		1,506	%		598	%

a	Unaudited figures for the period ended September 30, 2019. 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 expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	March 31, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	35.4%
Guggenheim Strategy Fund II	35.3%
Total	70.7%
“Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	(2.38%)	2.75%	(9.46%)	(14.04%)
A-Class Shares with sales charge‡	(7.03%)	(2.11%)	(10.34%)	(14.46%)
C-Class Shares	(3.35%)	1.30%	(10.23%)	(14.74%)
C-Class Shares with CDSC§	(4.32%)	0.30%	(10.23%)	(14.74%)
H-Class Shares	(2.43%)	2.85%	(9.42%)	(14.03%)
S&P MidCap 400 Index	2.96%	(2.49%)	8.88%	12.56%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 79

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
INVERSE MID-CAP STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 70.7%
Guggenheim Ultra Short Duration Fund — Institutional Class1		30,697	$	305,741
Guggenheim Strategy Fund II1		12,278		304,863
Total Mutual Funds
(Cost $610,044)				610,604

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 29.1%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/193	$	155,963	$	155,963
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/193		50,152		50,152
Barclays Capital issued 09/30/19 at 2.00% due 10/01/193		45,137		45,137
Total Repurchase Agreements
(Cost $251,252)				251,252
Total Investments - 99.8%
(Cost $861,296)			$	861,856
Other Assets & Liabilities, net - 0.2%				1,911
Total Net Assets - 100.0%			$	863,767

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive				Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
BNP Paribas	S&P MidCap 400 Index		(1.99	%)	At Maturity			10/29/19		202	$	391,730	$	2,418
Goldman Sachs International	S&P MidCap 400 Index		(2.01	%)	At Maturity			10/28/19		214		414,906		320
Barclays Bank plc	S&P MidCap 400 Index		(2.11	%)	At Maturity			10/31/19		28		54,431		42
											$	861,067	$	2,780

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	610,604	$	—	$	—	$	610,604
Repurchase Agreements		—		251,252		—		251,252
Equity Index Swap Agreements**		—		2,780		—		2,780
Total Assets	$	610,604	$	254,032	$	—	$	864,636

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
INVERSE MID-CAP STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:    

Security Name	Value 03/31/19		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	304,618	$	—	$	—	$	—	$	245		$	304,863		12,278	$	4,192
Guggenheim Ultra Short Duration Fund — Institutional Class		306,048		—		—		—		(307	)		305,741		30,697		4,250
	$	610,666	$	—	$	—	$	—	$	(62	)	$	610,604			$	8,442

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

INVERSE MID-CAP STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in affiliated issuers, at value (cost $610,044)	$	610,604
Repurchase agreements, at value (cost $251,252)		251,252
Unrealized appreciation on OTC swap agreements		2,780
Receivables:
Dividends		1,203
Fund shares sold		65
Interest		16
Total assets		865,920
Liabilities:
Payable for:
Management fees		562
Registration fees		407
Printing fees		262
Professional fees		196
Transfer agent and administrative fees		172
Distribution and service fees		172
Swap settlement		93
Portfolio accounting fees		69
Licensing fees		53
Trustees’ fees*		19
Fund shares redeemed		13
Miscellaneous		135
Total liabilities		2,153
Commitments and contingent liabilities (Note 11)		—
Net assets	$	863,767
Net assets consist of:
Paid in capital	$	5,733,337
Total distributable earnings (loss)		(4,869,570	)
Net assets	$	863,767
A-Class:
Net assets	$	105,560
Capital shares outstanding		4,957
Net asset value per share	$	21.30
Maximum offering price per share (Net asset value divided by 95.25%)	$	22.36
C-Class:
Net assets	$	19
Capital shares outstanding		1
Net asset value per share	$	18.75
H-Class:
Net assets	$	758,188
Capital shares outstanding		35,581
Net asset value per share	$	21.31

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	8,442
Interest		5,233
Total investment income		13,675
Expenses:
Management fees		4,692
Distribution and service fees:
A-Class		156
H-Class		1,147
Transfer agent and administrative fees		1,303
Registration fees		535
Portfolio accounting fees		521
Trustees’ fees*		146
Custodian fees		74
Miscellaneous		635
Total expenses		9,209
Less:
Expenses waived by Adviser		(384	)
Net expenses		8,825
Net investment income		4,850
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		(37,422	)
Net realized loss		(37,422	)
Net change in unrealized appreciation (depreciation) on:
Investments in affiliated issuers		(62	)
Swap agreements		12,824
Net change in unrealized appreciation (depreciation)		12,762
Net realized and unrealized loss		(24,660	)
Net decrease in net assets resulting from operations	$	(19,810	)

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

82 | 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, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	4,850		$	6,613
Net realized loss on investments		(37,422	)		(129,549	)
Net change in unrealized appreciation (depreciation) on investments		12,762			(7,137	)
Net decrease in net assets resulting from operations		(19,810	)		(130,073	)
Capital share transactions:
Proceeds from sale of shares
A-Class		—			1,548,797
C-Class		—			81,736
H-Class		7,483,290			19,268,674
Cost of shares redeemed
A-Class		(24,221	)		(1,515,031	)
C-Class		(107	)		(82,834	)
H-Class		(7,477,339	)		(18,935,916	)
Net increase (decrease) from capital share transactions		(18,377	)		365,426
Net increase (decrease) in net assets		(38,187	)		235,353
Net assets:
Beginning of period		901,954			666,601
End of period	$	863,767		$	901,954
Capital share activity:
Shares sold
A-Class		—			65,707
C-Class		—			4,272
H-Class		350,170			863,821
Shares redeemed
A-Class		(1,134	)		(66,605	)
C-Class		(5	)		(4,361	)
H-Class		(349,797	)		(851,436	)
Net increase (decrease) in shares		(766	)		11,398

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	21.82		$	22.31		$	24.92		$	30.70		$	30.76		$	35.55
Income (loss) from investment operations:
Net investment income (loss)b		.10			.13			(.11	)		(.28	)		(.38	)		(.48	)
Net gain (loss) on investments (realized and unrealized)		(.62	)		(.62	)		(2.50	)		(5.50	)		.32			(4.31	)
Total from investment operations		(.52	)		(.49	)		(2.61	)		(5.78	)		(.06	)		(4.79	)
Net asset value, end of period	$	21.30		$	21.82		$	22.31		$	24.92		$	30.70		$	30.76
Total Returnc		(2.38	%)		(2.20	%)		(10.47	%)		(18.89	%)		(0.16	%)		(13.47	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	106		$	133		$	156		$	226		$	111		$	47
Ratios to average net assets:
Net investment income (loss)		0.95	%		0.60	%		(0.49	%)		(1.02	%)		(1.18	%)		(1.40	%)
Total expensesd		1.77	%		1.77	%		1.68	%		1.68	%		1.65	%		1.66	%
Net expensese		1.69	%		1.75	%		1.68	%		1.68	%		1.65	%		1.66	%
Portfolio turnover rate		—			48	%		37	%		120	%		199	%		38	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	19.40		$	19.94		$	22.46		$	27.89		$	28.16		$	32.78
Income (loss) from investment operations:
Net investment income (loss)b		—	g		(.06	)		(.28	)		(.48	)		(.59	)		(.67	)
Net gain (loss) on investments (realized and unrealized)		(.65	)		(.48	)		(2.24	)		(4.95	)		.32			(3.95	)
Total from investment operations		(.65	)		(.54	)		(2.52	)		(5.43	)		(.27	)		(4.62	)
Net asset value, end of period	$	18.75		$	19.40		$	19.94		$	22.46		$	27.89		$	28.16
Total Returnc		(3.35	%)		(2.71	%)		(11.22	%)		(19.51	%)		(0.96	%)		(14.09	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	—	f	$	—	f	$	2		$	36		$	273		$	89
Ratios to average net assets:
Net investment income (loss)		0.42	%		(0.33	%)		(1.30	%)		(1.85	%)		(2.00	%)		(2.13	%)
Total expensesd		2.17	%		2.47	%		2.44	%		2.42	%		2.41	%		2.41	%
Net expensese		2.17	%		2.47	%		2.44	%		2.42	%		2.41	%		2.41	%
Portfolio turnover rate		—			48	%		37	%		120	%		199	%		38	%

84 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	21.84		$	22.29		$	24.90		$	30.69		$	30.70		$	35.49
Income (loss) from investment operations:
Net investment income (loss)b		.10			.13			(.09	)		(.31	)		(.42	)		(.47	)
Net gain (loss) on investments (realized and unrealized)		(.63	)		(.58	)		(2.52	)		(5.48	)		.41			(4.32	)
Total from investment operations		(.53	)		(.45	)		(2.61	)		(5.79	)		(.01	)		(4.79	)
Net asset value, end of period	$	21.31		$	21.84		$	22.29		$	24.90		$	30.69		$	30.70
Total Return		(2.43	%)		(2.02	%)		(10.48	%)		(18.87	%)		(0.07	%)		(13.47	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	758		$	769		$	509		$	606		$	2,680		$	3,015
Ratios to average net assets:
Net investment income (loss)		0.93	%		0.61	%		(0.39	%)		(1.10	%)		(1.32	%)		(1.38	%)
Total expensesd		1.77	%		1.77	%		1.68	%		1.67	%		1.65	%		1.65	%
Net expensese		1.69	%		1.75	%		1.68	%		1.67	%		1.65	%		1.65	%
Portfolio turnover rate		—			48	%		37	%		120	%		199	%		38	%

a	Unaudited figures for the period ended September 30, 2019. 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 expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
f	Less than $1,000 in Net Assets.
g	Net investment income is less than $0.01 per share.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 85

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	March 31, 2004
C-Class	January 23, 2001
H-Class	November 1, 2000

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	25.7%
Guggenheim Strategy Fund II	23.8%
Total	49.5%
“Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	(2.39%)	(17.14%)	9.01%	13.33%
A-Class Shares with sales charge‡	(7.02%)	(21.08%)	7.95%	12.78%
C-Class Shares	(2.76%)	(17.75%)	8.20%	12.48%
C-Class Shares with CDSC§	(3.73%)	(18.57%)	8.20%	12.48%
H-Class Shares	(2.40%)	(17.12%)	8.97%	13.30%
Russell 2000 Index	(0.36%)	(8.89%)	8.87%	13.11%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

86 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
WARRANTS†††,1 - 0.0%
Imperial Holdings, Inc.
$10.75, 10/06/19*		4	$	—
Total Warrants
(Cost $—)				—
RIGHTS†††,1 - 0.0%
Tobira Therapeutics, Inc.*		14		—
Nexstar Media Group, Inc.*		85		—
Omthera Pharmaceuticals, Inc.*		57		—
A Schulman, Inc.*		44		—
Total Rights
(Cost $—)				—
MUTUAL FUNDS† - 49.5%
Guggenheim Ultra Short Duration Fund — Institutional Class2		210,463		2,096,214
Guggenheim Strategy Fund II2		78,185		1,941,329
Total Mutual Funds
(Cost $4,056,625)				4,037,543
	Face Amount
FEDERAL AGENCY NOTES†† - 23.0%
Federal Farm Credit Bank
2.15% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/223	$	1,000,000		999,432
2.20% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/223		250,000		250,738
2.07% (U.S. Prime Rate - 2.94%, Rate Floor: 0.00%) due 10/30/203		100,000		100,077
Federal Home Loan Bank
2.18% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 01/04/213		525,000		524,453
Total Federal Agency Notes
(Cost $1,874,435)				1,874,700

	Face Amount		Value
U.S. TREASURY BILLS†† - 9.8%
U.S. Treasury Bills
1.82% due 11/21/194	$	550,000	$	548,602
1.77% due 11/21/194		250,000		249,365
Total U.S. Treasury Bills
(Cost $797,934)				797,967
REPURCHASE AGREEMENTS††,5 - 17.9%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/196		906,857		906,857
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/196		291,615		291,615
Barclays Capital issued 09/30/19 at 2.00% due 10/01/196		262,454		262,454
Total Repurchase Agreements
(Cost $1,460,926)				1,460,926
Total Investments - 100.2%
(Cost $8,189,920)			$	8,171,136
Other Assets & Liabilities, net - (0.2)%				(17,611	)
Total Net Assets - 100.0%			$	8,153,525

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay			Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
Goldman Sachs International	Russell 2000 Index		2.16	%	At Maturity		10/28/19		667	$	1,015,350	$	(5,987	)
Barclays Bank plc	Russell 2000 Index		1.91	%	At Maturity		10/31/19		5,170		7,875,259		(51,454	)
BNP Paribas	Russell 2000 Index		2.14	%	At Maturity		10/29/19		2,215		3,373,837		(60,420	)
										$	12,264,446	$	(117,861	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
RUSSELL 2000® 1.5x STRATEGY 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	Security was fair valued by the Valuation Committee at September 30, 2019. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
2	Affiliated issuer.
3	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Warrants	$	—	$	—	$	—	*	$	—
Rights		—		—		—	*		—
Mutual Funds		4,037,543		—		—			4,037,543
Federal Agency Notes		—		1,874,700		—			1,874,700
U.S. Treasury Bills		—		797,967		—			797,967
Repurchase Agreements		—		1,460,926		—			1,460,926
Total Assets	$	4,037,543	$	4,133,593	$	—		$	8,171,136

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	117,861	$	—	$	117,861

*	Includes securities with a market value of $0.
**	This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
RUSSELL 2000® 1.5x STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	2,489,544	$	—	$	(550,000	)	$	(3,989	)	$	5,774		$	1,941,329		78,185	$	33,168
Guggenheim Ultra Short Duration Fund — Institutional Class		2,498,319		—		(400,000	)		(1,589	)		(516	)		2,096,214		210,463		31,030
	$	4,987,863	$	—	$	(950,000	)	$	(5,578	)	$	5,258		$	4,037,543			$	64,198

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $2,672,369)	$	2,672,667
Investments in affiliated issuers, at value (cost $4,056,625)		4,037,543
Repurchase agreements, at value (cost $1,460,926)		1,460,926
Segregated cash with broker		64,220
Receivables:
Fund shares sold		69,435
Dividends		7,990
Interest		5,646
Swap settlement		3,828
Total assets		8,322,255
Liabilities:
Unrealized depreciation on OTC swap agreements		117,861
Payable for:
Fund shares redeemed		30,986
Management fees		5,095
Distribution and service fees		1,557
Transfer agent and administrative fees		1,527
Portfolio accounting fees		611
Trustees’ fees*		167
Miscellaneous		10,926
Total liabilities		168,730
Commitments and contingent liabilities (Note 11)		—
Net assets	$	8,153,525
Net assets consist of:
Paid in capital	$	7,779,922
Total distributable earnings (loss)		373,603
Net assets	$	8,153,525
A-Class:
Net assets	$	1,898,362
Capital shares outstanding		30,567
Net asset value per share	$	62.10
Maximum offering price per share (Net asset value divided by 95.25%)	$	65.20
C-Class:
Net assets	$	49,048
Capital shares outstanding		934
Net asset value per share	$	52.51
H-Class:
Net assets	$	6,206,115
Capital shares outstanding		100,341
Net asset value per share	$	61.85

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of unaffiliated issuers	$	1,857
Dividends from securities of affiliated issuers		64,198
Interest		40,710
Income from securities lending, net		28
Total investment income		106,793
Expenses:
Management fees		38,287
Distribution and service fees:
A-Class		2,521
C-Class		304
H-Class		8,039
Transfer agent and administrative fees		10,635
Registration fees		4,507
Portfolio accounting fees		4,254
Trustees’ fees*		1,235
Custodian fees		612
Miscellaneous		6,921
Total expenses		77,315
Less:
Expenses waived by Adviser		(2,807	)
Net expenses		74,508
Net investment income		32,285
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		175,152
Investments in affiliated issuers		(5,578	)
Swap agreements		354,602
Futures contracts		(5,481	)
Net realized gain		518,695
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(179,834	)
Investments in affiliated issuers		5,258
Swap agreements		(227,959	)
Net change in unrealized appreciation (depreciation)		(402,535	)
Net realized and unrealized gain		116,160
Net increase in net assets resulting from operations	$	148,445

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

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

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	32,285		$	69,654
Net realized gain on investments		518,695			3,050,875
Net change in unrealized appreciation (depreciation) on investments		(402,535	)		4,139
Net increase in net assets resulting from operations		148,445			3,124,668
Capital share transactions:
Proceeds from sale of shares
A-Class		153,549			1,275,564
C-Class		7,733			4,788,055
H-Class		19,285,520			262,178,295
Cost of shares redeemed
A-Class		(269,268	)		(454,972	)
C-Class		(36,529	)		(5,865,534	)
H-Class		(19,954,342	)		(265,822,852	)
Net decrease from capital share transactions		(813,337	)		(3,901,444	)
Net decrease in net assets		(664,892	)		(776,776	)
Net assets:
Beginning of period		8,818,417			9,595,193
End of period	$	8,153,525		$	8,818,417
Capital share activity:
Shares sold
A-Class		2,411			17,655
C-Class		141			77,413
H-Class		316,672			4,300,372
Shares redeemed
A-Class		(4,289	)		(6,912	)
C-Class		(652	)		(94,418	)
H-Class		(321,685	)		(4,306,790	)
Net decrease in shares		(7,402	)		(12,680	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	63.62		$	64.49		$	55.99		$	44.78		$	58.05		$	53.23
Income (loss) from investment operations:
Net investment income (loss)b		.24			.34			.02			(.32	)		(.43	)		(.39	)
Net gain (loss) on investments (realized and unrealized)		(1.76	)g		(1.21	)g		8.48			16.87			(9.03	)		5.41
Total from investment operations		(1.52	)		(.87	)		8.50			16.55			(9.46	)		5.02
Less distributions from:
Net realized gains		—			—			—			(5.34	)		(3.81	)		(.20	)
Total distributions		—			—			—			(5.34	)		(3.81	)		(.20	)
Net asset value, end of period	$	62.10		$	63.62		$	64.49		$	55.99		$	44.78		$	58.05
Total Returnc		(2.39	%)		(1.35	%)		15.18	%		38.01	%		(16.75	%)		9.48	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,898		$	2,064		$	1,400		$	1,172		$	497		$	627
Ratios to average net assets:
Net investment income (loss)		0.76	%		0.52	%		0.03	%		(0.62	%)		(0.85	%)		(0.74	%)
Total expensesd		1.81	%		1.80	%		1.72	%		1.73	%		1.70	%		1.70	%
Net expensese		1.75	%		1.78	%		1.72	%		1.73	%		1.70	%		1.70	%
Portfolio turnover rate		—			258	%		580	%		1,315	%		971	%		830	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	54.00		$	55.14		$	48.24		$	39.44		$	52.01		$	48.08
Income (loss) from investment operations:
Net investment income (loss)b		—	f		(.30	)		(.40	)		(.63	)		(.73	)		(.70	)
Net gain (loss) on investments (realized and unrealized)		(1.49	)g		(.84	)g		7.30			14.77			(8.03	)		4.83
Total from investment operations		(1.49	)		(1.14	)		6.90			14.14			(8.76	)		4.13
Less distributions from:
Net realized gains		—			—			—			(5.34	)		(3.81	)		(.20	)
Total distributions		—			—			—			(5.34	)		(3.81	)		(.20	)
Net asset value, end of period	$	52.51		$	54.00		$	55.14		$	48.24		$	39.44		$	52.01
Total Returnc		(2.76	%)		(2.07	%)		14.30	%		36.98	%		(17.36	%)		8.64	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	49		$	78		$	1,017		$	1,494		$	1,322		$	1,800
Ratios to average net assets:
Net investment income (loss)		0.01	%		(0.50	%)		(0.78	%)		(1.41	%)		(1.62	%)		(1.49	%)
Total expensesd		2.56	%		2.54	%		2.48	%		2.47	%		2.45	%		2.45	%
Net expensese		2.50	%		2.53	%		2.48	%		2.47	%		2.45	%		2.45	%
Portfolio turnover rate		—			258	%		580	%		1,315	%		971	%		830	%

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

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	63.37		$	64.22		$	55.86		$	44.75		$	57.94		$	53.13
Income (loss) from investment operations:
Net investment income (loss)b		.24			.29			(.11	)		(.51	)		(.51	)		(.40	)
Net gain (loss) on investments (realized and unrealized)		(1.76	)g		(1.14	)g		8.47			16.96			(8.87	)		5.41
Total from investment operations		(1.52	)		(.85	)		8.36			16.45			(9.38	)		5.01
Less distributions from:
Net realized gains		—			—			—			(5.34	)		(3.81	)		(.20	)
Total distributions		—			—			—			(5.34	)		(3.81	)		(.20	)
Net asset value, end of period	$	61.85		$	63.37		$	64.22		$	55.86		$	44.75		$	57.94
Total Return		(2.40	%)		(1.32	%)		14.97	%		37.80	%		(16.63	%)		9.48	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,206		$	6,676		$	7,178		$	8,447		$	8,049		$	18,596
Ratios to average net assets:
Net investment income (loss)		0.76	%		0.46	%		(0.18	%)		(0.98	%)		(1.01	%)		(0.76	%)
Total expensesd		1.81	%		1.81	%		1.72	%		1.73	%		1.70	%		1.70	%
Net expensese		1.75	%		1.80	%		1.72	%		1.73	%		1.70	%		1.70	%
Portfolio turnover rate		—			258	%		580	%		1,315	%		971	%		830	%

a	Unaudited figures for the period ended September 30, 2019. 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 expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
f	Net investment income is less than $0.01 per share.
g	The amount shown for a share outstanding throughout the period does not accord with the aggregate net gains on investments for the year because of the sales and repurchases of Fund shares in relation to fluctuating market value of the investments of the fund.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 93

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

The Fund invests principally in derivative instruments such as swap agreements and futures contracts.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	(1.14%)	(10.33%)	6.32%	9.45%
A-Class Shares with sales charge‡	(5.83%)	(14.59%)	5.29%	8.92%
C-Class Shares	(1.51%)	(11.00%)	5.53%	8.58%
C-Class Shares with CDSC§	(2.49%)	(11.89%)	5.53%	8.58%
H-Class Shares	(1.12%)	(10.33%)	6.32%	9.44%
Russell 2000 Index	(0.36%)	(8.89%)	8.87%	13.11%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

94 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
RUSSELL 2000® FUND

	Shares		Value
COMMON STOCKS† - 0.0%
Financial - 0.0%
Arrow Financial Corp.		1	$	36
Total Common Stocks
(Cost $22)				36
RIGHTS†††,1 - 0.0%
Nexstar Media Group, Inc.*		2,530		—
Omthera Pharmaceuticals, Inc.*		86		—
A Schulman, Inc.*		408		—
Elanco Animal Health, Inc.*		505		—
Tobira Therapeutics, Inc.*		141		—
GTX, Inc.*		7		—
Total Rights
(Cost $104)				—
	Face Amount
FEDERAL AGENCY NOTES†† - 36.1%
Federal Farm Credit Bank
2.20% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222	$	4,300,000		4,290,372
2.20% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222		4,000,000		4,011,803
2.15% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/222		2,000,000		1,998,864
Freddie Mac
1.95% (U.S. Secured Overnight Financing Rate + 0.13%, Rate Floor: 0.00%) due 08/05/222		2,000,000		1,996,068
Total Federal Agency Notes
(Cost $12,300,000)				12,297,107

	Face Amount		Value
U.S. TREASURY BILLS†† - 2.7%
U.S. Treasury Bills
1.82% due 11/21/193	$	610,000	$	608,450
1.77% due 11/21/193		300,000		299,237
1.93% due 10/29/193,4		4,000		3,994
Total U.S. Treasury Bills
(Cost $911,645)				911,681
REPURCHASE AGREEMENTS††,5 - 66.2%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/196		13,986,816		13,986,816
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/196		4,497,694		4,497,694
Barclays Capital issued 09/30/19 at 2.00% due 10/01/196		4,047,924		4,047,924
Total Repurchase Agreements
(Cost $22,532,434)				22,532,434
	Shares
SECURITIES LENDING COLLATERAL†,7 - 0.1%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%8		17,293		17,293
Total Securities Lending Collateral
(Cost $17,293)				17,293
Total Investments - 105.1%
(Cost $35,761,498)			$	35,758,551
Other Assets & Liabilities, net - (5.1)%				(1,733,429	)
Total Net Assets - 100.0%			$	34,025,122

Futures Contracts
Description	Number of Contracts	Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Purchased†
Russell 2000 Index Mini Futures Contracts	41	Dec 2019	$	3,124,815	$	(25,192	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
RUSSELL 2000® FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay			Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
Barclays Bank plc	Russell 2000 Index		1.91	%	At Maturity		10/31/19		5,773	$	8,794,082	$	(57,458	)
BNP Paribas	Russell 2000 Index		2.14	%	At Maturity		10/29/19		2,924		4,454,922		(79,780	)
Goldman Sachs International	Russell 2000 Index		2.16	%	At Maturity		10/28/19		11,626		17,710,072		(90,972	)
										$	30,959,076	$	(228,210	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	Security was fair valued by the Valuation Committee at September 30, 2019. The total market value of fair valued securities amounts to $0, (cost $104) or 0.0% of total net assets.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as futures collateral at September 30, 2019.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
7	Securities lending collateral — See Note 7.
8	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	36	$	—	$	—		$	36
Rights		—		—		—	*		—
Federal Agency Notes		—		12,297,107		—			12,297,107
U.S. Treasury Bills		—		911,681		—			911,681
Repurchase Agreements		—		22,532,434		—			22,532,434
Securities Lending Collateral		17,293		—		—			17,293
Total Assets	$	17,329	$	35,741,222	$	—		$	35,758,551

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	25,192	$	—	$	—	$	25,192
Equity Index Swap Agreements**		—		228,210		—		228,210
Total Liabilities	$	25,192	$	228,210	$	—	$	253,402

*	Includes securities with a market value of $0.
**	This derivative is reported as unrealized appreciation/depreciation at period end.

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

RUSSELL 2000^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value (cost $13,229,064)	$	13,226,117
Repurchase agreements, at value (cost $22,532,434)		22,532,434
Cash		14,148
Segregated cash with broker		296,546
Receivables:
Interest		39,526
Dividends		15,877
Fund shares sold		3,124
Securities lending income		440
Total assets		36,128,212
Liabilities:
Unrealized depreciation on OTC swap agreements		228,210
Payable for:
Fund shares redeemed		1,574,162
Swap settlement		185,306
Management fees		22,478
Return of securities lending collateral		17,293
Distribution and service fees		9,087
Transfer agent and administrative fees		7,493
Variation margin on futures contracts		6,583
Portfolio accounting fees		4,496
Trustees’ fees*		721
Miscellaneous		47,261
Total liabilities		2,103,090
Commitments and contingent liabilities (Note 11)		—
Net assets	$	34,025,122
Net assets consist of:
Paid in capital	$	33,590,890
Total distributable earnings (loss)		434,232
Net assets	$	34,025,122
A-Class:
Net assets	$	17,453,249
Capital shares outstanding		402,995
Net asset value per share	$	43.31
Maximum offering price per share (Net asset value divided by 95.25%)	$	45.47
C-Class:
Net assets	$	2,688,372
Capital shares outstanding		69,823
Net asset value per share	$	38.50
H-Class:
Net assets	$	13,883,501
Capital shares outstanding		321,301
Net asset value per share	$	43.21

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $31)	$	126,612
Interest		227,343
Income from securities lending, net		3,790
Total investment income		357,745
Expenses:
Management fees		144,257
Distribution and service fees
A-Class		22,887
C-Class		15,112
H-Class		21,424
Transfer agent and administrative fees		48,087
Portfolio accounting fees		28,853
Registration fees		17,500
Trustees’ fees*		4,662
Custodian fees		2,723
Miscellaneous		35,254
Total expenses		340,759
Net investment income		16,986
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,010,516
Swap agreements		(167,676	)
Futures contracts		(71,792	)
Net realized gain		3,771,048
Net change in unrealized appreciation (depreciation) on:
Investments		(4,302,250	)
Swap agreements		(385,141	)
Futures contracts		(27,189	)
Net change in unrealized appreciation (depreciation)		(4,714,580	)
Net realized and unrealized loss		(943,532	)
Net decrease in net assets resulting from operations	$	(926,546	)

^* 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 | 97

RUSSELL 2000^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	16,986		$	(98,815	)
Net realized gain (loss) on investments		3,771,048			(652,459	)
Net change in unrealized appreciation (depreciation) on investments		(4,714,580	)		(455,050	)
Net decrease in net assets resulting from operations		(926,546	)		(1,206,324	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,575,430			148,474,143
C-Class		372,676			10,124,276
H-Class		94,225,025			128,775,760
Cost of shares redeemed
A-Class		(2,497,875	)		(145,526,441	)
C-Class		(900,418	)		(12,203,764	)
H-Class		(99,040,058	)		(134,374,234	)
Net decrease from capital share transactions		(6,265,220	)		(4,730,260	)
Net decrease in net assets		(7,191,766	)		(5,936,584	)
Net assets:
Beginning of period		41,216,888			47,153,472
End of period	$	34,025,122		$	41,216,888
Capital share activity:
Shares sold
A-Class		36,247			3,091,191
C-Class		9,391			255,282
H-Class		2,144,338			2,863,744
Shares redeemed
A-Class		(57,122	)		(3,060,305	)
C-Class		(23,059	)		(306,208	)
H-Class		(2,266,599	)		(2,987,447	)
Net decrease in shares		(156,804	)		(143,743	)

98 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	43.81		$	43.67		$	41.61		$	33.56		$	38.88		$	37.80
Income (loss) from investment operations:
Net investment income (loss)b		.03			(.05	)		(.17	)		(.21	)		(.29	)		(.25	)
Net gain (loss) on investments (realized and unrealized)		(.53	)		.19	d		4.34			8.26			(4.12	)		2.61
Total from investment operations		(.50	)		.14			4.17			8.05			(4.41	)		2.36
Less distributions from:
Net realized gains		—			—			(2.11	)		—			(.91	)		(1.28	)
Total distributions		—			—			(2.11	)		—			(.91	)		(1.28	)
Net asset value, end of period	$	43.31		$	43.81		$	43.67		$	41.61		$	33.56		$	38.88
Total Returnc		(1.14	%)		0.32	%		10.03	%		23.96	%		(11.43	%)		6.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,453		$	18,569		$	17,163		$	14,650		$	11,993		$	13,920
Ratios to average net assets:
Net investment income (loss)		0.14	%		(0.11	%)		(0.40	%)		(0.54	%)		(0.83	%)		(0.67	%)
Total expenses		1.71	%		1.71	%		1.63	%		1.62	%		1.59	%		1.57	%
Portfolio turnover rate		18	%		112	%		167	%		203	%		442	%		947	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	39.09		$	39.26		$	37.87		$	30.78		$	36.00		$	35.36
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.37	)		(.45	)		(.44	)		(.51	)		(.60	)
Net gain (loss) on investments (realized and unrealized)		(.47	)		.20	d		3.95			7.53			(3.80	)		2.52
Total from investment operations		(.59	)		(.17	)		3.50			7.09			(4.31	)		1.92
Less distributions from:
Net realized gains		—			—			(2.11	)		—			(.91	)		(1.28	)
Total distributions		—			—			(2.11	)		—			(.91	)		(1.28	)
Net asset value, end of period	$	38.50		$	39.09		$	39.26		$	37.87		$	30.78		$	36.00
Total Returnc		(1.51	%)		(0.43	%)		9.21	%		23.03	%		(12.07	%)		5.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,688		$	3,264		$	5,277		$	5,841		$	2,760		$	4,259
Ratios to average net assets:
Net investment income (loss)		(0.61	%)		(0.91	%)		(1.16	%)		(1.27	%)		(1.56	%)		(1.77	%)
Total expenses		2.46	%		2.46	%		2.38	%		2.38	%		2.35	%		2.57	%
Portfolio turnover rate		18	%		112	%		167	%		203	%		442	%		947	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	43.70		$	43.57		$	41.51		$	33.48		$	38.79		$	37.73
Income (loss) from investment operations:
Net investment income (loss)b		.03			(.06	)		(.19	)		(.21	)		(.35	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(.52	)		.19	d		4.36			8.24			(4.05	)		2.62
Total from investment operations		(.49	)		.13			4.17			8.03			(4.40	)		2.34
Less distributions from:
Net realized gains		—			—			(2.11	)		—			(.91	)		(1.28	)
Total distributions		—			—			(2.11	)		—			(.91	)		(1.28	)
Net asset value, end of period	$	43.21		$	43.70		$	43.57		$	41.51		$	33.48		$	38.79
Total Return		(1.12	%)		0.30	%		10.03	%		23.95	%		(11.43	%)		6.37	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,884		$	19,384		$	24,713		$	29,466		$	46,251		$	27,902
Ratios to average net assets:
Net investment income (loss)		0.16	%		(0.14	%)		(0.43	%)		(0.54	%)		(0.97	%)		(0.77	%)
Total expenses		1.71	%		1.71	%		1.63	%		1.63	%		1.60	%		1.58	%
Portfolio turnover rate		18	%		112	%		167	%		203	%		442	%		947	%

a	Unaudited figures for the period ended September 30, 2019. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	March 31, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Ultra Short Duration Fund — Institutional Class	14.0%
Guggenheim Strategy Fund II	12.6%
Total	26.6%
“Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	0.29%	8.94%	(9.75%)	(14.18%)
A-Class Shares with sales charge‡	(4.48%)	3.75%	(10.63%)	(14.59%)
C-Class Shares	(0.05%)	8.14%	(10.44%)	(14.81%)
C-Class Shares with CDSC§	(1.05%)	7.14%	(10.44%)	(14.81%)
H-Class Shares	0.29%	9.02%	(9.74%)	(14.15%)
Russell 2000 Index	(0.36%)	(8.89%)	8.87%	13.11%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Russell 2000 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 101

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
INVERSE RUSSELL 2000® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 26.6%
Guggenheim Ultra Short Duration Fund — Institutional Class1		94,992	$	946,122
Guggenheim Strategy Fund II1		34,379		853,639
Total Mutual Funds
(Cost $1,796,333)				1,799,761
	Face Amount
FEDERAL AGENCY NOTES†† - 20.3%
Federal Farm Credit Bank
2.15% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/222	$	500,000		499,716
1.97% due 08/19/21		360,000		358,507
2.19% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		120,000		120,123
Federal Home Loan Bank
2.01% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 12/18/202		400,000		399,428
Total Federal Agency Notes
(Cost $1,379,370)				1,377,774

	Face Amount		Value
U.S. TREASURY BILLS†† - 3.2%
U.S. Treasury Bills
1.82% due 11/21/193	$	160,000	$	159,594
1.93% due 10/29/193,4		59,000		58,914
Total U.S. Treasury Bills
(Cost $218,491)				218,508
REPURCHASE AGREEMENTS††,5 - 49.1%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/196		2,067,664		2,067,664
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/196		664,892		664,892
Barclays Capital issued 09/30/19 at 2.00% due 10/01/196		598,402		598,402
Total Repurchase Agreements
(Cost $3,330,958)				3,330,958
Total Investments - 99.2%
(Cost $6,725,152)			$	6,727,001
Other Assets & Liabilities, net - 0.8%				55,021
Total Net Assets - 100.0%			$	6,782,022

Futures Contracts
Description	Number of Contracts			Expiration Date	Notional Amount		Value and Unrealized Appreciation**
Equity Futures Contracts Sold Short†
Russell 2000 Index Mini Futures Contracts		15	Dec 2019		$	1,143,225	$	47,624

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive				Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
Goldman Sachs International	Russell 2000 Index		(1.86	%)	At Maturity			10/28/19		2,458	$	3,744,726	$	23,621
BNP Paribas	Russell 2000 Index		(1.64	%)	At Maturity			10/29/19		473		720,517		12,903
Barclays Bank plc	Russell 2000 Index		(1.41	%)	At Maturity			10/31/19		790		1,203,492		7,863
											$	5,668,735	$	44,387

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
INVERSE RUSSELL 2000® STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as futures collateral at September 30, 2019.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	1,799,761	$	—	$	—	$	1,799,761
Federal Agency Notes		—		1,377,774		—		1,377,774
U.S. Treasury Bills		—		218,508		—		218,508
Repurchase Agreements		—		3,330,958		—		3,330,958
Equity Futures Contracts**		47,624		—		—		47,624
Equity Index Swap Agreements**		—		44,387		—		44,387
Total Assets	$	1,847,385	$	4,971,627	$	—	$	6,819,012

^** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,252,629	$	—	$	(400,000	)	$	(11	)	$	1,021		$	853,639		34,379	$	13,679
Guggenheim Ultra Short Duration Fund — Institutional Class		1,347,072		—		(400,000	)		(493	)		(457	)		946,122		94,992		14,955
	$	2,599,701	$	—	$	(800,000	)	$	(504	)	$	564		$	1,799,761			$	28,634

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $1,597,861)	$	1,596,282
Investments in affiliated issuers, at value (cost $1,796,333)		1,799,761
Repurchase agreements, at value (cost $3,330,958)		3,330,958
Segregated cash with broker		1,399
Unrealized appreciation on OTC swap agreements		44,387
Receivables:
Fund shares sold		23,242
Dividends		3,561
Interest		2,689
Total assets		6,802,279
Liabilities:
Payable for:
Management fees		5,361
Swap settlement		2,118
Licensing fees		1,790
Distribution and service fees		1,763
Printing fees		1,754
Transfer agent and administrative fees		1,540
Professional fees		1,313
Portfolio accounting fees		616
Variation margin on futures contracts		150
Trustees’ fees*		128
Miscellaneous		3,724
Total liabilities		20,257
Commitments and contingent liabilities (Note 11)		—
Net assets	$	6,782,022
Net assets consist of:
Paid in capital	$	33,493,874
Total distributable earnings (loss)		(26,711,852	)
Net assets	$	6,782,022
A-Class:
Net assets	$	291,879
Capital shares outstanding		14,254
Net asset value per share	$	20.48
Maximum offering price per share (Net asset value divided by 95.25%)	$	21.50
C-Class:
Net assets	$	382,971
Capital shares outstanding		21,041
Net asset value per share	$	18.20
H-Class:
Net assets	$	6,107,172
Capital shares outstanding		297,132
Net asset value per share	$	20.55

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	28,634
Interest		58,315
Total investment income		86,949
Expenses:
Management fees		31,429
Distribution and service fees:
A-Class		723
C-Class		2,163
H-Class		7,467
Transfer agent and administrative fees		8,730
Registration fees		5,316
Portfolio accounting fees		3,492
Trustees’ fees*		1,293
Custodian fees		506
Miscellaneous		3,771
Total expenses		64,890
Less:
Expenses waived by Adviser		(1,355	)
Net expenses		63,535
Net investment income		23,414
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		174
Investments in affiliated issuers		(504	)
Swap agreements		(605,914	)
Futures contracts		(144,329	)
Net realized loss		(750,573	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(1,579	)
Investments in affiliated issuers		564
Swap agreements		155,476
Futures contracts		61,081
Net change in unrealized appreciation (depreciation)		215,542
Net realized and unrealized loss		(535,031	)
Net decrease in net assets resulting from operations	$	(511,617	)

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

104 | 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, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	23,414		$	52,324
Net realized loss on investments		(750,573	)		(42,797	)
Net change in unrealized appreciation (depreciation) on investments		215,542			(174,046	)
Net decrease in net assets resulting from operations		(511,617	)		(164,519	)
Capital share transactions:
Proceeds from sale of shares
A-Class		193,392			5,160,677
C-Class		9,958			5,873,034
H-Class		37,760,281			97,798,195
Cost of shares redeemed
A-Class		(643,689	)		(4,494,155	)
C-Class		(86,718	)		(5,988,495	)
H-Class		(40,537,778	)		(91,998,591	)
Net increase (decrease) from capital share transactions		(3,304,554	)		6,350,665
Net increase (decrease) in net assets		(3,816,171	)		6,186,146
Net assets:
Beginning of period		10,598,193			4,412,047
End of period	$	6,782,022		$	10,598,193
Capital share activity:
Shares sold
A-Class		9,422			230,007
C-Class		534			326,224
H-Class		1,835,165			4,711,124
Shares redeemed
A-Class		(31,716	)		(205,975	)
C-Class		(4,735	)		(333,306	)
H-Class		(1,996,485	)		(4,421,740	)
Net increase (decrease) in shares		(187,815	)		306,334

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	20.42		$	20.90		$	23.62		$	30.76		$	29.22		$	33.01
Income (loss) from investment operations:
Net investment income (loss)b		.08			.14			(.18	)		(.31	)		(.39	)		(.46	)
Net gain (loss) on investments (realized and unrealized)		(.02	)		(.62	)		(2.54	)		(6.83	)		1.93			(3.33	)
Total from investment operations		.06			(.48	)		(2.72	)		(7.14	)		1.54			(3.79	)
Net asset value, end of period	$	20.48		$	20.42		$	20.90		$	23.62		$	30.76		$	29.22
Total Returnc		0.29	%		(2.30	%)		(11.52	%)		(23.21	%)		5.27	%		(11.48	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	292		$	746		$	262		$	8,645		$	2,795		$	894
Ratios to average net assets:
Net investment income (loss)		0.79	%		0.65	%		(0.76	%)		(1.11	%)		(1.23	%)		(1.40	%)
Total expensesd		1.81	%		1.83	%		1.74	%		1.71	%		1.70	%		1.71	%
Net expensese		1.76	%		1.81	%		1.74	%		1.71	%		1.70	%		1.71	%
Portfolio turnover rate		16	%		40	%		—			58	%		584	%		189	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	18.21		$	18.79		$	21.41		$	28.07		$	26.86		$	30.59
Income (loss) from investment operations:
Net investment income (loss)b		—	f		(.05	)		(.25	)		(.45	)		(.58	)		(.63	)
Net gain (loss) on investments (realized and unrealized)		(.01	)		(.53	)		(2.37	)		(6.21	)		1.79			(3.10	)
Total from investment operations		(.01	)		(.58	)		(2.62	)		(6.66	)		1.21			(3.73	)
Net asset value, end of period	$	18.20		$	18.21		$	18.79		$	21.41		$	28.07		$	26.86
Total Returnc		(0.05	%)		(3.09	%)		(12.24	%)		(23.73	%)		4.50	%		(12.19	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	383		$	460		$	607		$	1,028		$	1,729		$	1,680
Ratios to average net assets:
Net investment income (loss)		(0.01	%)		(0.26	%)		(1.22	%)		1.83	%		(2.08	%)		(2.13	%)
Total expensesd		2.56	%		2.56	%		2.48	%		2.47	%		2.45	%		2.45	%
Net expensese		2.52	%		2.55	%		2.48	%		2.47	%		2.45	%		2.45	%
Portfolio turnover rate		16	%		40	%		—			58	%		584	%		189	%

106 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	20.49		$	20.96		$	23.69		$	30.83		$	29.30		$	33.11
Income (loss) from investment operations:
Net investment income (loss)b		.07			.11			(.09	)		(.32	)		(.41	)		(.46	)
Net gain (loss) on investments (realized and unrealized)		(.01	)		(.58	)		(2.64	)		(6.82	)		1.94			(3.35	)
Total from investment operations		.06			(.47	)		(2.73	)		(7.14	)		1.53			(3.81	)
Net asset value, end of period	$	20.55		$	20.49		$	20.96		$	23.69		$	30.83		$	29.30
Total Return		0.29	%		(2.24	%)		(11.52	%)		(23.16	%)		5.22	%		(11.51	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,107		$	9,392		$	3,543		$	5,777		$	36,713		$	5,775
Ratios to average net assets:
Net investment income (loss)		0.71	%		0.53	%		(0.39	%)		(1.14	%)		(1.28	%)		(1.41	%)
Total expensesd		1.81	%		1.82	%		1.72	%		1.72	%		1.70	%		1.70	%
Net expensese		1.77	%		1.81	%		1.72	%		1.72	%		1.70	%		1.70	%
Portfolio turnover rate		16	%		40	%		—			58	%		584	%		189	%

a	Unaudited figures for the period ended September 30, 2019. 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 expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
f	Net investment income is less than $0.01 per share.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	December 1, 2015
C-Class	December 1, 2015
H-Class	December 1, 2015

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	8.4%
Guggenheim Ultra Short Duration Fund — Institutional Class	8.3%
Boeing Co.	6.4%
Home Depot, Inc.	3.9%
Apple, Inc.	3.8%
UnitedHealth Group, Inc.	3.7%
McDonald’s Corp.	3.6%
Goldman Sachs Group, Inc.	3.5%
Visa, Inc. — Class A	2.9%
3M Co.	2.8%
Top Ten Total	47.3%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	Since Inception (12/01/15)
A-Class Shares	4.20%	2.33%	12.15%
A-Class Shares with sales charge‡	(0.76%)	(2.52%)	10.74%
C-Class Shares	3.81%	1.59%	11.31%
C-Class Shares with CDSC§	2.81%	0.59%	11.31%
H-Class Shares	4.19%	2.33%	12.17%
Dow Jones Industrial Average Index	5.09%	4.21%	13.97%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Dow Jones Industrial Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

108 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
DOW JONES INDUSTRIAL AVERAGE® FUND

	Shares		Value
COMMON STOCKS† - 67.3%
Industrial - 13.7%
Boeing Co.		6,941	$	2,640,842
3M Co.		6,941		1,141,100
United Technologies Corp.		6,941		947,586
Caterpillar, Inc.		6,941		876,718
Total Industrial				5,606,246
Financial - 13.0%
Goldman Sachs Group, Inc.		6,941		1,438,384
Visa, Inc. — Class A		6,941		1,193,921
Travelers Companies, Inc.		6,941		1,032,057
American Express Co.		6,941		820,982
JPMorgan Chase & Co.		6,941		816,886
Total Financial				5,302,230
Consumer, Cyclical - 12.1%
Home Depot, Inc.		6,941		1,610,451
McDonald’s Corp.		6,941		1,490,302
Walmart, Inc.		6,941		823,758
NIKE, Inc. — Class B		6,941		651,899
Walgreens Boots Alliance, Inc.		6,941		383,906
Total Consumer, Cyclical				4,960,316
Consumer, Non-cyclical - 10.9%
UnitedHealth Group, Inc.		6,941		1,508,418
Johnson & Johnson		6,941		898,027
Procter & Gamble Co.		6,941		863,322
Merck & Company, Inc.		6,941		584,293
Coca-Cola Co.		6,941		377,868
Pfizer, Inc.		6,941		249,390
Total Consumer, Non-cyclical				4,481,318
Technology - 9.5%
Apple, Inc.		6,941		1,554,576
International Business Machines Corp.		6,941		1,009,360
Microsoft Corp.		6,941		965,007
Intel Corp.		6,941		357,670
Total Technology				3,886,613
Communications - 4.1%
Walt Disney Co.		6,941		904,551
Verizon Communications, Inc.		6,941		418,959
Cisco Systems, Inc.		6,941		342,955
Total Communications				1,666,465
Energy - 3.2%
Chevron Corp.		6,941		823,202
Exxon Mobil Corp.		6,941		490,104
Total Energy				1,313,306
Basic Materials - 0.8%
Dow, Inc.		6,941		330,739
Total Common Stocks
(Cost $23,991,254)				27,547,233
MUTUAL FUNDS† - 16.7%
Guggenheim Strategy Fund II1		137,947		3,425,228
Guggenheim Ultra Short Duration Fund — Institutional Class1		343,381		3,420,075
Total Mutual Funds
(Cost $6,842,917)				6,845,303
	Face Amount
U.S. TREASURY BILLS†† - 0.7%
U.S. Treasury Bills
1.82% due 11/21/192	$	160,000		159,593
1.93% due 10/29/192,3		122,000		121,823
Total U.S. Treasury Bills
(Cost $281,394)				281,416
REPURCHASE AGREEMENTS††,4 - 11.3%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/195		2,886,374		2,886,374
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/195		928,162		928,162
Barclays Capital issued 09/30/19 at 2.00% due 10/01/195		835,345		835,345
Total Repurchase Agreements
(Cost $4,649,881)				4,649,881
Total Investments - 96.0%
(Cost $35,765,446)			$	39,323,833
Other Assets & Liabilities, net - 4.0%				1,650,576
Total Net Assets - 100.0%			$	40,974,409

Futures Contracts
Description	Number of Contracts	Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Purchased†
Dow Jones Industrial Average Index Mini Futures Contracts	57	Dec 2019	$	7,663,935	$	(11,105	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
DOW JONES INDUSTRIAL AVERAGE® FUND

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay			Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Equity Index Swap Agreements††
Barclays Bank plc	Dow Jones Industrial Average Index		2.41	%	At Maturity		10/31/19		47	$	1,265,818	$	1,206
BNP Paribas	Dow Jones Industrial Average Index		2.54	%	At Maturity		10/29/19		174		4,684,852		(4,430	)
										$	5,950,670	$	(3,224	)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Rate indicated is the effective yield at the time of purchase.
3	All or a portion of this security is pledged as futures collateral at September 30, 2019.
4	Repurchase Agreements — See Note 6.
5	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	27,547,233	$	—	$	—	$	27,547,233
Mutual Funds		6,845,303		—		—		6,845,303
U.S. Treasury Bills		—		281,416		—		281,416
Repurchase Agreements		—		4,649,881		—		4,649,881
Equity Index Swap Agreements**		—		1,206		—		1,206
Total Assets	$	34,392,536	$	4,932,503	$	—	$	39,325,039

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	11,105	$	—	$	—	$	11,105
Equity Index Swap Agreements**		—		4,430		—		4,430
Total Liabilities	$	11,105	$	4,430	$	—	$	15,535

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
DOW JONES INDUSTRIAL AVERAGE® FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	3,422,469	$	—	$	—	$	—	$	2,759		$	3,425,228		137,947	$	47,103
Guggenheim Ultra Short Duration Fund — Institutional Class		3,423,509		—		—		—		(3,434	)		3,420,075		343,381		47,537
	$	6,845,978	$	—	$	—	$	—	$	(675	)	$	6,845,303			$	94,640

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

DOW JONES INDUSTRIAL AVERAGE^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $24,272,648)	$	27,828,649
Investments in affiliated issuers, at value (cost $6,842,917)		6,845,303
Repurchase agreements, at value (cost $4,649,881)		4,649,881
Segregated cash with broker		128,233
Unrealized appreciation on OTC swap agreements		1,206
Receivables:
Fund shares sold		1,572,286
Variation margin on futures contracts		20,617
Dividends		20,079
Interest		294
Total assets		41,066,548
Liabilities:
Unrealized depreciation on OTC swap agreements		4,430
Payable for:
Management fees		19,574
Registration fees		14,772
Distribution and service fees		8,127
Printing fees		9,503
Professional fees		7,113
Transfer agent and administrative fees		6,743
Licensing fees		5,619
Fund shares redeemed		4,236
Portfolio accounting fees		2,697
Swap settlement		1,692
Trustees’ fees*		735
Miscellaneous		6,898
Total liabilities		92,139
Commitments and contingent liabilities (Note 11)		—
Net assets	$	40,974,409
Net assets consist of:
Paid in capital	$	32,036,471
Total distributable earnings (loss)		8,937,938
Net assets	$	40,974,409
A-Class:
Net assets	$	7,330,737
Capital shares outstanding		99,735
Net asset value per share	$	73.50
Maximum offering price per share (Net asset value divided by 95.25%)	$	77.17
C-Class:
Net assets	$	2,503,663
Capital shares outstanding		35,086
Net asset value per share	$	71.36
H-Class:
Net assets	$	31,140,009
Capital shares outstanding		423,396
Net asset value per share	$	73.55

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of unaffiliated issuers	$	312,945
Dividends from securities of affiliated issuers		94,640
Interest		32,470
Total investment income		440,055
Expenses:
Management fees		141,935
Distribution and service fees
A-Class		9,235
C-Class		10,456
H-Class		35,463
Transfer agent and administrative fees		47,312
Registration fees		20,752
Portfolio accounting fees		18,924
Trustees’ fees*		5,283
Custodian fees		2,723
Miscellaneous		25,228
Total expenses		317,311
Less:
Expenses waived by Adviser		(4,289	)
Net expenses		313,022
Net investment income		127,033
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,058,733
Swap agreements		600,615
Futures contracts		140,544
Net realized gain		5,799,892
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(4,126,625	)
Investments in affiliated issuers		(675	)
Swap agreements		(136,211	)
Futures contracts		(10,807	)
Net change in unrealized appreciation (depreciation)		(4,274,318	)
Net realized and unrealized gain		1,525,574
Net increase in net assets resulting from operations	$	1,652,607

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

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

DOW JONES INDUSTRIAL AVERAGE^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	127,033		$	422,699
Net realized gain on investments		5,799,892			8,709,934
Net change in unrealized appreciation (depreciation) on investments		(4,274,318	)		(4,608,320	)
Net increase in net assets resulting from operations		1,652,607			4,524,313
Distributions to shareholders:
A-Class		—			(104,984	)
C-Class		—			(22,489	)
H-Class		—			(463,766	)
Total distributions to shareholders		—			(591,239	)
Capital share transactions:
Proceeds from sale of shares
A-Class		5,969,165			78,585,897
C-Class		1,776,561			1,582,226
H-Class		90,401,147			462,514,750
Distributions reinvested
A-Class		—			76,561
C-Class		—			21,083
H-Class		—			463,042
Cost of shares redeemed
A-Class		(18,002,952	)		(81,898,564	)
C-Class		(1,077,367	)		(3,347,159	)
H-Class		(101,115,147	)		(493,573,657	)
Net decrease from capital share transactions		(22,048,593	)		(35,575,821	)
Net decrease in net assets		(20,395,986	)		(31,642,747	)
Net assets:
Beginning of period		61,370,395			93,013,142
End of period	$	40,974,409		$	61,370,395
Capital share activity:
Shares sold
A-Class		82,277			1,150,595
C-Class		25,347			23,845
H-Class		1,254,131			6,744,613
Shares issued from reinvestment of distributions
A-Class		—			1,155
C-Class		—			326
H-Class		—			6,984
Shares redeemed
A-Class		(252,210	)		(1,199,548	)
C-Class		(15,449	)		(49,811	)
H-Class		(1,406,160	)		(7,217,481	)
Net decrease in shares		(312,064	)		(539,322	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Period Ended March 31, 2016b
Per Share Data
Net asset value, beginning of period	$	70.54		$	66.00		$	58.25		$	49.60		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		.23			.55			.34			.23			(.03	)
Net gain (loss) on investments (realized and unrealized)		2.73			4.78			9.91			8.73			(.37	)
Total from investment operations		2.96			5.33			10.25			8.96			(.40	)
Less distributions from:
Net investment income		—			(.64	)		(.35	)		(.02	)		—
Net realized gains		—			(.15	)		(2.15	)		(.29	)		—
Total distributions		—			(.79	)		(2.50	)		(.31	)		—
Net asset value, end of period	$	73.50		$	70.54		$	66.00		$	58.25		$	49.60
Total Returnd		4.20	%		8.15	%		17.55	%		18.10	%		(0.80	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,331		$	19,022		$	20,953		$	19,523		$	44,351
Ratios to average net assets:
Net investment income (loss)		0.64	%		0.80	%		0.54	%		0.44	%		(0.21	%)
Total expensese		1.64	%		1.61	%		1.56	%		1.56	%		1.55	%
Net expensesf		1.61	%		1.61	%		1.56	%		1.56	%		1.55	%
Portfolio turnover rate		99	%		465	%		168	%		668	%		98	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Period Ended March 31, 2016b
Per Share Data
Net asset value, beginning of period	$	68.74		$	64.81		$	57.66		$	49.47		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		.01			.03			(.09	)		(.11	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		2.61			4.69			9.74			8.61			(.46	)
Total from investment operations		2.62			4.72			9.65			8.50			(.53	)
Less distributions from:
Net investment income		—			(.64	)		(.35	)		(.02	)		—
Net realized gains		—			(.15	)		(2.15	)		(.29	)		—
Total distributions		—			(.79	)		(2.50	)		(.31	)		—
Net asset value, end of period	$	71.36		$	68.74		$	64.81		$	57.66		$	49.47
Total Returnd		3.81	%		7.37	%		16.66	%		17.21	%		(1.06	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,504		$	1,731		$	3,294		$	2,144		$	732
Ratios to average net assets:
Net investment income (loss)		0.02	%		0.04	%		(0.14	%)		(0.21	%)		(0.43	%)
Total expensese		2.39	%		2.36	%		2.30	%		2.32	%		2.30	%
Net expensesf		2.36	%		2.36	%		2.36	%		2.32	%		2.30	%
Portfolio turnover rate		99	%		465	%		168	%		668	%		98	%

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

DOW JONES INDUSTRIAL AVERAGE^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Period Ended March 31, 2016b
Per Share Data
Net asset value, beginning of period	$	70.59		$	66.04		$	58.28		$	49.59		$	50.00
Income (loss) from investment operations:
Net investment income (loss)c		.26			.55			.39			.28			(.03	)
Net gain (loss) on investments (realized and unrealized)		2.70			4.79			9.87			8.72			(.38	)
Total from investment operations		2.96			5.34			10.26			9.00			(.41	)
Less distributions from:
Net investment income		—			(.64	)		(.35	)		(.02	)		—
Net realized gains		—			(.15	)		(2.15	)		(.29	)		—
Total distributions		—			(.79	)		(2.50	)		(.31	)		—
Net asset value, end of period	$	73.55		$	70.59		$	66.04		$	58.28		$	49.59
Total Return		4.19	%		8.16	%		17.54	%		18.20	%		(0.82	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	31,140		$	40,617		$	68,766		$	42,495		$	18,923
Ratios to average net assets:
Net investment income (loss)		0.73	%		0.80	%		0.61	%		0.52	%		(0.17	%)
Total expensese		1.63	%		1.62	%		1.55	%		1.57	%		1.55	%
Net expensesf		1.61	%		1.62	%		1.55	%		1.57	%		1.55	%
Portfolio turnover rate		99	%		465	%		168	%		668	%		98	%

a	Unaudited figures for the period ended September 30, 2019. 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	Total return does not reflect the impact of any applicable sales charges.
e	Does not include expenses of the underlying funds in which the Fund invests.
f	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
Investor Class	January 3, 1994
A-Class	March 31, 2004
C-Class	May 2, 2001
H-Class	September 18, 2014

The Fund invests principally in U.S. Government securities and in derivative investments such as futures contracts.

Largest Holdings (% of Total Net Assets)
U.S. Treasury Bond	65.2%
Guggenheim Ultra Short Duration Fund — Institutional Class	9.5%
Guggenheim Strategy Fund II	9.4%
Total	84.1%
“Largest Holdings” excludes any temporary cash or derivative investments.

116 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	19.05%	31.71%	7.13%	7.89%
A-Class Shares	18.91%	31.35%	6.90%	7.68%
A-Class Shares with sales charge‡	13.27%	25.12%	5.87%	7.16%
C-Class Shares	18.47%	30.38%	6.11%	6.83%
C-Class Shares with CDSC§	17.47%	29.38%	6.11%	6.83%
Bloomberg Barclays U.S. Long Treasury Index	14.43%	24.79%	6.77%	6.87%
Price Movement of Long Treasury Bond**	15.96%	24.98%	4.24%	3.37%

	6 Month†	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	18.94%	31.38%	6.92%	7.62%
Bloomberg Barclays U.S Long Treasury Index	14.43%	24.79%	6.77%	7.25%
Price Movement of Long Treasury Bond**	15.96%	24.98%	4.24%	4.80%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays U.S. Long Treasury Index and the Price Movement of Long Treasury Bond are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Does not reflect any interest.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 117

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 18.9%
Guggenheim Ultra Short Duration Fund — Institutional Class1		1,219,684	$	12,148,057
Guggenheim Strategy Fund II1		487,547		12,105,802
Total Mutual Funds
(Cost $24,323,597)				24,253,859
	Face Amount
U.S. GOVERNMENT SECURITIES†† - 65.2%
U.S. Treasury Bond
2.25% due 08/15/49	$	81,100,000		83,494,984
Total U.S. Government Securities
(Cost $84,063,028)				83,494,984
U.S. TREASURY BILLS†† - 1.7%
U.S. Treasury Bills
1.93% due 10/29/192,3		2,187,000		2,183,823
Total U.S. Treasury Bills
(Cost $2,183,657)				2,183,823

	Face Amount		Value
REPURCHASE AGREEMENTS††,4 - 15.9%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	12,641,117	$	12,641,117
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		4,064,962		4,064,962
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		3,658,466		3,658,466
Total Repurchase Agreements
(Cost $20,364,545)				20,364,545
Total Investments - 101.7%
(Cost $130,934,827)			$	130,297,211
Other Assets & Liabilities, net - (1.7)%				(2,164,333	)
Total Net Assets - 100.0%			$	128,132,878

Futures Contracts
Description	Number of Contracts			Expiration Date	Notional Amount		Value and Unrealized Depreciation**
Interest Rate Futures Contracts Purchased†
U.S. Treasury Ultra Long Bond Futures Contracts		429	Dec 2019		$	82,408,219	$	(351,574	)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	All or a portion of this security is pledged as futures collateral at September 30, 2019.
3	Rate indicated is the effective yield at the time of purchase.
4	Repurchase Agreements — See Note 6.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	24,253,859	$	—	$	—	$	24,253,859
U.S. Government Securities		—		83,494,984		—		83,494,984
U.S. Treasury Bills		—		2,183,823		—		2,183,823
Repurchase Agreements		—		20,364,545		—		20,364,545
Total Assets	$	24,253,859	$	106,043,352	$	—	$	130,297,211

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Interest Rate Futures Contracts**	$	351,574	$	—	$	—	$	351,574

^** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	10,298,989	$	2,300,000	$	(500,000	)	$	(3,626	)	$	10,439		$	12,105,802		487,547	$	156,484
Guggenheim Ultra Short Duration Fund — Institutional Class		9,520,254		4,000,000		(1,360,000	)		(6,491	)		(5,706	)		12,148,057		1,219,684		145,125
	$	19,819,243	$	6,300,000	$	(1,860,000	)	$	(10,117	)	$	4,733		$	24,253,859			$	301,609

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $86,246,685)	$	85,678,807
Investments in affiliated issuers, at value (cost $24,323,597)		24,253,859
Repurchase agreements, at value (cost $20,364,545)		20,364,545
Receivables:
Fund shares sold		10,371,372
Securities sold		4,324,032
Interest		258,848
Variation margin on futures contracts		111,223
Dividends		47,788
Total assets		145,410,474
Liabilities:
Payable for:
Fund shares redeemed		16,987,959
Management fees		55,208
Transfer agent and administrative fees		23,015
Distribution and service fees		16,982
Portfolio accounting fees		11,508
Distributions to shareholders		8,571
Trustees’ fees*		3,031
Miscellaneous		171,322
Total liabilities		17,277,596
Commitments and contingent liabilities (Note 11)		—
Net assets	$	128,132,878
Net assets consist of:
Paid in capital	$	93,312,570
Total distributable earnings (loss)		34,820,308
Net assets	$	128,132,878
Investor Class:
Net assets	$	69,058,851
Capital shares outstanding		1,098,199
Net asset value per share	$	62.88
A-Class:
Net assets	$	8,738,445
Capital shares outstanding		137,900
Net asset value per share	$	63.37
Maximum offering price per share (Net asset value divided by 95.25%)	$	66.53
C-Class:
Net assets	$	1,438,757
Capital shares outstanding		22,860
Net asset value per share	$	62.94
H-Class:
Net assets	$	48,896,825
Capital shares outstanding		771,136
Net asset value per share	$	63.41

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	301,609
Interest		1,753,093
Total investment income		2,054,702
Expenses:
Management fees		402,852
Distribution and service fees:
A-Class		26,560
C-Class		4,233
H-Class		82,921
Transfer agent and administrative fees		161,143
Portfolio accounting fees		80,536
Registration fees		76,532
Professional fees		52,318
Trustees’ fees*		21,656
Custodian fees		11,411
Line of credit fees		55
Miscellaneous		47,961
Total expenses		968,178
Less:
Expenses waived by Adviser		(13,044	)
Net expenses		955,134
Net investment income		1,099,568
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		25,030,573
Investments in affiliated issuers		(10,117	)
Futures contracts		11,388,198
Net realized gain		36,408,654
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(5,345,035	)
Investments in affiliated issuers		4,733
Futures contracts		(2,806,772	)
Net change in unrealized appreciation (depreciation)		(8,147,074	)
Net realized and unrealized gain		28,261,580
Net increase in net assets resulting from operations	$	29,361,148

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

120 | 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, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,099,568		$	2,272,131
Net realized gain on investments		36,408,654			9,037,811
Net change in unrealized appreciation (depreciation) on investments		(8,147,074	)		2,294,507
Net increase in net assets resulting from operations		29,361,148			13,604,449
Distributions to shareholders:
Investor Class		(542,824	)		(914,867	)
A-Class		(145,148	)		(163,323	)
C-Class		(1,842	)		(9,678	)
H-Class		(409,881	)		(1,184,263	)
Total distributions to shareholders		(1,099,695	)		(2,272,131	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		504,826,786			731,937,613
A-Class		1,766,439			24,971,881
C-Class		3,279,670			17,049,193
H-Class		426,857,776			782,907,060
Distributions reinvested
Investor Class		497,018			826,982
A-Class		144,529			159,458
C-Class		1,584			9,081
H-Class		408,943			1,180,471
Cost of shares redeemed
Investor Class		(514,820,660	)		(709,185,722	)
A-Class		(22,871,051	)		(8,255,917	)
C-Class		(2,597,921	)		(17,260,604	)
H-Class		(432,368,862	)		(821,319,993	)
Net increase (decrease) from capital share transactions		(34,875,749	)		3,019,503
Net increase (decrease) in net assets		(6,614,296	)		14,351,821
Net assets:
Beginning of period		134,747,174			120,395,353
End of period	$	128,132,878		$	134,747,174
Capital share activity:
Shares sold
Investor Class		8,897,953			14,900,624
A-Class		30,900			500,367
C-Class		58,609			340,165
H-Class		7,609,535			15,608,139
Shares issued from reinvestment of distributions
Investor Class		8,589			16,612
A-Class		2,534			3,118
C-Class		28			182
H-Class		7,020			23,521
Shares redeemed
Investor Class		(9,069,193	)		(14,388,567	)
A-Class		(354,985	)		(163,333	)
C-Class		(47,179	)		(343,065	)
H-Class		(7,635,603	)		(16,313,575	)
Net increase (decrease) in shares		(491,792	)		184,188

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	53.22		$	51.21		$	50.49		$	58.12		$	59.12		$	45.80
Income (loss) from investment operations:
Net investment income (loss)b		.43			.96			.80			.70			.76			.63
Net gain (loss) on investments (realized and unrealized)		9.67			2.00			.72			(5.50	)		(.67	)		13.34
Total from investment operations		10.10			2.96			1.52			(4.80	)		.09			13.97
Less distributions from:
Net investment income		(.44	)		(.95	)		(.80	)		(.72	)		(1.09	)		(.65	)
Net realized gains		—			—			—			(2.11	)		—			—
Total distributions		(.44	)		(.95	)		(.80	)		(2.83	)		(1.09	)		(.65	)
Net asset value, end of period	$	62.88		$	53.22		$	51.21		$	50.49		$	58.12		$	59.12
Total Return		19.05	%		5.93	%		3.01	%		(8.39	%)		0.33	%		30.66	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	69,059		$	67,103		$	37,496		$	16,496		$	56,419		$	61,460
Ratios to average net assets:
Net investment income (loss)		1.49	%		1.94	%		1.52	%		1.21	%		1.39	%		1.21	%
Total expensesc		1.06	%		1.07	%		0.98	%		0.98	%		0.94	%		0.95	%
Net expensesd		1.04	%		1.06	%		0.98	%		0.98	%		0.94	%		0.95	%
Portfolio turnover rate		616	%		1,182	%		1,468	%		2,490	%		2,699	%		1,932	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	53.63		$	51.62		$	50.87		$	58.50		$	59.47		$	46.07
Income (loss) from investment operations:
Net investment income (loss)b		.39			.83			.69			.63			.64			.51
Net gain (loss) on investments (realized and unrealized)		9.72			2.01			.74			(5.57	)		(.65	)		13.42
Total from investment operations		10.11			2.84			1.43			(4.94	)		(.01	)		13.93
Less distributions from:
Net investment income		(.37	)		(.83	)		(.68	)		(.58	)		(.96	)		(.53	)
Net realized gains		—			—			—			(2.11	)		—			—
Total distributions		(.37	)		(.83	)		(.68	)		(2.69	)		(.96	)		(.53	)
Net asset value, end of period	$	63.37		$	53.63		$	51.62		$	50.87		$	58.50		$	59.47
Total Returne		18.91	%		5.63	%		2.78	%		(8.54	%)		0.12	%		30.37	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,738		$	24,639		$	6,158		$	15,827		$	9,438		$	3,879
Ratios to average net assets:
Net investment income (loss)		1.37	%		1.65	%		1.31	%		1.19	%		1.16	%		0.97	%
Total expensesc		1.31	%		1.33	%		1.23	%		1.24	%		1.20	%		1.20	%
Net expensesd		1.29	%		1.32	%		1.23	%		1.24	%		1.20	%		1.20	%
Portfolio turnover rate		616	%		1,182	%		1,468	%		2,490	%		2,699	%		1,932	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	53.27		$	51.24		$	50.52		$	58.13		$	59.09		$	45.79
Income (loss) from investment operations:
Net investment income (loss)b		.13			.45			.27			.13			.22			.13
Net gain (loss) on investments (realized and unrealized)		9.69			2.04			.73			(5.47	)		(.64	)		13.30
Total from investment operations		9.82			2.49			1.00			(5.34	)		(.42	)		13.43
Less distributions from:
Net investment income		(.15	)		(.46	)		(.28	)		(.16	)		(.54	)		(.13	)
Net realized gains		—			—			—			(2.11	)		—			—
Total distributions		(.15	)		(.46	)		(.28	)		(2.27	)		(.54	)		(.13	)
Net asset value, end of period	$	62.94		$	53.27		$	51.24		$	50.52		$	58.13		$	59.09
Total Returne		18.47	%		4.92	%		1.97	%		(9.24	%)		(0.62	%)		29.37	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,439		$	607		$	724		$	1,770		$	3,276		$	2,873
Ratios to average net assets:
Net investment income (loss)		0.43	%		0.91	%		0.52	%		0.22	%		0.41	%		0.26	%
Total expensesc		2.06	%		2.07	%		1.98	%		1.97	%		1.95	%		1.95	%
Net expensesd		2.04	%		2.06	%		1.98	%		1.97	%		1.95	%		1.95	%
Portfolio turnover rate		616	%		1,182	%		1,468	%		2,490	%		2,699	%		1,932	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	53.65		$	51.64		$	50.91		$	58.55		$	59.44		$	48.83
Income (loss) from investment operations:
Net investment income (loss)b		.36			.84			.69			.58			.61			.28
Net gain (loss) on investments (realized and unrealized)		9.77			2.01			.72			(5.53	)		(.54	)		10.59
Total from investment operations		10.13			2.85			1.41			(4.95	)		.07			10.87
Less distributions from:
Net investment income		(.37	)		(.84	)		(.68	)		(.58	)		(.96	)		(.26	)
Net realized gains		—			—			—			(2.11	)		—			—
Total distributions		(.37	)		(.84	)		(.68	)		(2.69	)		(.96	)		(.26	)
Net asset value, end of period	$	63.41		$	53.65		$	51.64		$	50.91		$	58.55		$	59.44
Total Return		18.94	%		5.63	%		2.74	%		(8.55	%)		0.26	%		22.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	48,897		$	42,397		$	76,018		$	12,077		$	49,639		$	78,382
Ratios to average net assets:
Net investment income (loss)		1.24	%		1.67	%		1.31	%		1.00	%		1.11	%		0.89	%
Total expensesc		1.31	%		1.32	%		1.23	%		1.22	%		1.20	%		1.18	%
Net expensesd		1.29	%		1.31	%		1.23	%		1.22	%		1.20	%		1.18	%
Portfolio turnover rate		616	%		1,182	%		1,468	%		2,490	%		2,699	%		1,932	%

a	Unaudited figures for the period ended September 30, 2019. 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	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Total return does not reflect the impact of any applicable sales charges.
f	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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 most recently issued 30 Year U.S. Treasury Bond. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	March 3, 1995
A-Class	March 31, 2004
C-Class	March 28, 2001
H-Class	September 18, 2014

The Fund invests principally in short sales and derivative investments such as futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	15.7%
Guggenheim Ultra Short Duration Fund — Institutional Class	7.4%
Total	23.1%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 125

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	(13.63%)	(20.41%)	(7.35%)	(8.58%)
A-Class Shares	(13.71%)	(20.60%)	(7.58%)	(8.81%)
A-Class Shares with sales charge‡	(17.81%)	(24.37%)	(8.47%)	(9.26%)
C-Class Shares	(14.06%)	(21.20%)	(8.27%)	(9.48%)
C-Class Shares with CDSC§	(14.92%)	(21.98%)	(8.27%)	(9.48%)
Bloomberg Barclays U.S. Long Treasury Index	14.43%	24.79%	6.77%	6.87%
Price Movement of Long Treasury Bond**	15.96%	24.98%	4.24%	3.37%

	6 Month†	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	(13.74%)	(20.58%)	(7.53%)	(8.04%)
Bloomberg Barclays U.S. Long Treasury Index	14.43%	24.79%	6.77%	7.25%
Price Movement of Long Treasury Bond**	15.96%	24.98%	4.24%	4.80%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays U.S. Long Treasury Index and the Price Movement of Long Treasury Bond are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
**	Does not reflect any interest.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

126 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 23.1%
Guggenheim Strategy Fund II1		315,563	$	7,835,421
Guggenheim Ultra Short Duration Fund — Institutional Class1		368,496		3,670,219
Total Mutual Funds
(Cost $11,471,003)				11,505,640
	Face Amount
FEDERAL AGENCY NOTES†† - 73.3%
Federal Farm Credit Bank
2.15% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/222	$	8,000,000		7,995,458
2.20% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222		6,800,000		6,820,065
2.19% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		2,220,000		2,222,280
2.09% (U.S. Prime Rate - 2.91%, Rate Floor: 0.00%) due 01/25/212		1,000,000		1,001,834
2.14% (3 Month USD LIBOR - 0.12%, Rate Floor: 0.00%) due 01/27/202		900,000		899,970
Federal Home Loan Bank
2.01% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 12/18/202		15,365,000		15,343,028
2.10% due 07/29/20		1,650,000		1,650,183
2.38% due 03/30/20		600,000		601,511
Total Federal Agency Notes
(Cost $36,525,641)				36,534,329
U.S. TREASURY BILLS†† - 1.6%
U.S. Treasury Bills
1.93% due 10/29/193,4		803,000		801,834
Total U.S. Treasury Bills
(Cost $801,773)				801,834

	Face Amount		Value
REPURCHASE AGREEMENTS†† - 56.7%
Individual Repurchase Agreements6
Barclays Capital issued 09/30/19 at 1.65% due 10/01/19 (secured by a U.S. Treasury Bond, at a rate of 2.25% and maturing 08/15/49 as collateral, with a value of $16,729,913) to be repurchased at $16,402,627	$	16,401,875	$	16,401,875
Mizuho Financial Group, Inc. issued 09/30/19 at 1.90% due 10/01/19 (secured by a U.S. Treasury Bond, at a rate of 2.25% and maturing 08/15/49 as collateral, with a value of $10,295,313) to be repurchased at $10,093,976		10,093,444		10,093,444
Joint Repurchase Agreements5
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19		1,123,587		1,123,587
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		361,308		361,308
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		325,177		325,177
Total Repurchase Agreements
(Cost $28,305,391)				28,305,391
Total Investments - 154.7%
(Cost $77,103,808)			$	77,147,194
U.S. Government Securities Sold Short†† - (53.9)%
U.S. Treasury Bonds
2.25% due 08/15/49		26,100,000		(26,870,766	)
Total U.S. Government Securities Sold Short
(Proceeds $27,446,022)				(26,870,766	)
Other Assets & Liabilities, net - (0.8)%				(396,407	)
Total Net Assets - 100.0%			$	49,880,021

Futures Contracts
Description	Number of Contracts			Expiration Date	Notional Amount		Value and Unrealized Appreciation**
Interest Rate Futures Contracts Sold Short†
U.S. Treasury Ultra Long Bond Futures Contracts		141	Dec 2019		$	27,085,219	$	440,503

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at September 30, 2019.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as short security collateral at September 30, 2019.
	LIBOR — London Interbank Offered Rate
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	11,505,640	$	—	$	—	$	11,505,640
Federal Agency Notes		—		36,534,329		—		36,534,329
U.S. Treasury Bills		—		801,834		—		801,834
Repurchase Agreements		—		28,305,391		—		28,305,391
Interest Rate Futures Contracts**		440,503		—		—		440,503
Total Assets	$	11,946,143	$	65,641,554	$	—	$	77,587,697

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
U.S. Government Securities	$	—	$	26,870,766	$	—	$	26,870,766

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	10,028,908	$	—	$	(2,199,999	)	$	(4,232	)	$	10,744		$	7,835,421		315,563	$	131,193
Guggenheim Ultra Short Duration Fund — Institutional Class		4,778,021		3,000,000		(4,100,000	)		3,009			(10,811	)		3,670,219		368,496		86,628
	$	14,806,929	$	3,000,000	$	(6,299,999	)	$	(1,223	)	$	(67	)	$	11,505,640			$	217,821

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $37,327,414)	$	37,336,163
Investments in affiliated issuers, at value (cost $11,471,003)		11,505,640
Repurchase agreements, at value (cost $28,305,391)		28,305,391
Receivables:
Interest		57,070
Dividends		24,100
Fund shares sold		8,316
Total assets		77,236,680
Liabilities:
Securities sold short, at value (proceeds $27,446,022)		26,870,766
Payable for:
Securities purchased		205,906
Interest payable on short sales		76,153
Fund shares redeemed		50,568
Management fees		35,313
Variation margin on futures contracts		35,250
Transfer agent and administrative fees		10,032
Distribution and service fees		5,350
Portfolio accounting fees		4,013
Trustees’ fees*		1,193
Miscellaneous		62,115
Total liabilities		27,356,659
Commitments and contingent liabilities (Note 11)		—
Net assets	$	49,880,021
Net assets consist of:
Paid in capital	$	311,759,760
Total distributable earnings (loss)		(261,879,739	)
Net assets	$	49,880,021
Investor Class:
Net assets	$	34,912,737
Capital shares outstanding		1,221,486
Net asset value per share	$	28.58
A-Class:
Net assets	$	7,775,632
Capital shares outstanding		284,055
Net asset value per share	$	27.37
Maximum offering price per share (Net asset value divided by 95.25%)	$	28.73
C-Class:
Net assets	$	4,232,922
Capital shares outstanding		178,421
Net asset value per share	$	23.72
H-Class:
Net assets	$	2,958,730
Capital shares outstanding		107,823
Net asset value per share	$	27.44

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	217,821
Interest		982,203
Total investment income		1,200,024
Expenses:
Management fees		296,132
Distribution and service fees
A-Class		12,163
C-Class		26,953
H-Class		12,314
Transfer agent and administrative fees		82,259
Short interest expense		462,016
Portfolio accounting fees		32,903
Trustees’ fees*		8,509
Custodian fees		4,675
Line of credit fees		2
Miscellaneous		73,008
Total expenses		1,010,934
Less:
Expenses waived by Adviser		(7,774	)
Net expenses		1,003,160
Net investment income		196,864
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		3,871
Investments in affiliated issuers		(1,223	)
Investments sold short		(5,557,433	)
Futures contracts		(5,530,662	)
Net realized loss		(11,085,447	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		5,463
Investments in affiliated issuers		(67	)
Investments sold short		1,883,455
Futures contracts		951,495
Net change in unrealized appreciation (depreciation)		2,840,346
Net realized and unrealized loss		(8,245,101	)
Net decrease in net assets resulting from operations	$	(8,048,237	)

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

130 | 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, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	196,864		$	(535,984	)
Net realized loss on investments		(11,085,447	)		(3,798,045	)
Net change in unrealized appreciation (depreciation) on investments		2,840,346			1,543,150
Net decrease in net assets resulting from operations		(8,048,237	)		(2,790,879	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		151,625,052			165,520,097
A-Class		331,819			8,314,612
C-Class		62,865			17,671,085
H-Class		192,908,865			237,606,283
Cost of shares redeemed
Investor Class		(154,710,368	)		(199,019,343	)
A-Class		(2,587,842	)		(10,860,881	)
C-Class		(2,015,872	)		(28,733,779	)
H-Class		(198,740,101	)		(232,371,577	)
Net decrease from capital share transactions		(13,125,582	)		(41,873,503	)
Net decrease in net assets		(21,173,819	)		(44,664,382	)
Net assets:
Beginning of period		71,053,840			115,718,222
End of period	$	49,880,021		$	71,053,840
Capital share activity:
Shares sold
Investor Class		4,708,052			4,681,218
A-Class		10,850			248,177
C-Class		2,425			597,564
H-Class		6,068,656			7,029,926
Shares redeemed
Investor Class		(4,790,589	)		(5,632,166	)
A-Class		(86,354	)		(322,713	)
C-Class		(75,348	)		(973,066	)
H-Class		(6,261,382	)		(6,874,901	)
Net decrease in shares		(423,690	)		(1,245,961	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	33.09		$	34.64		$	36.02		$	34.27		$	35.78		$	46.01
Income (loss) from investment operations:
Net investment income (loss)b		.12			(.13	)		(.56	)		(.88	)		(1.15	)		(1.15	)
Net gain (loss) on investments (realized and unrealized)		(4.63	)		(1.42	)		(.82	)		2.63			(.36	)		(9.08	)
Total from investment operations		(4.51	)		(1.55	)		(1.38	)		1.75			(1.51	)		(10.23	)
Net asset value, end of period	$	28.58		$	33.09		$	34.64		$	36.02		$	34.27		$	35.78
Total Return		(13.63	%)		(4.47	%)		(3.83	%)		5.08	%		(4.22	%)		(22.23	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	34,913		$	43,149		$	78,110		$	84,123		$	89,071		$	105,696
Ratios to average net assets:
Net investment income (loss)		0.77	%		(0.37	%)		(1.63	%)		(2.59	%)		(3.07	%)		(2.80	%)
Total expensesc		2.88	%		4.12	%		3.71	%		3.38	%		3.48	%		3.15	%
Net expensesd,g		2.86	%		4.12	%		3.71	%		3.38	%		3.48	%		3.15	%
Portfolio turnover rate		477	%		603	%		908	%		1,436	%		838	%		2,190	%

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	31.72		$	33.30		$	34.71		$	33.11		$	34.66		$	44.68
Income (loss) from investment operations:
Net investment income (loss)b		.08			(.19	)		(.63	)		(.94	)		(1.20	)		(1.23	)
Net gain (loss) on investments (realized and unrealized)		(4.43	)		(1.39	)		(.78	)		2.54			(.35	)		(8.79	)
Total from investment operations		(4.35	)		(1.58	)		(1.41	)		1.60			(1.55	)		(10.02	)
Net asset value, end of period	$	27.37		$	31.72		$	33.30		$	34.71		$	33.11		$	34.66
Total Returne		(13.71	%)		(4.74	%)		(4.06	%)		4.83	%		(4.47	%)		(22.43	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,776		$	11,407		$	14,455		$	18,678		$	17,676		$	21,580
Ratios to average net assets:
Net investment income (loss)		0.52	%		(0.57	%)		(1.90	%)		(2.85	%)		(3.32	%)		(3.06	%)
Total expensesc		3.15	%		4.38	%		3.97	%		3.67	%		3.75	%		3.40	%
Net expensesd,g		3.13	%		4.37	%		3.97	%		3.67	%		3.75	%		3.40	%
Portfolio turnover rate		477	%		603	%		908	%		1,436	%		838	%		2,190	%

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	27.60		$	29.19		$	30.65		$	29.46		$	31.07		$	40.35
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.43	)		(.77	)		(1.05	)		(1.31	)		(1.36	)
Net gain (loss) on investments (realized and unrealized)		(3.85	)		(1.16	)		(.69	)		2.24			(.30	)		(7.92	)
Total from investment operations		(3.88	)		(1.59	)		(1.46	)		1.19			(1.61	)		(9.28	)
Net asset value, end of period	$	23.72		$	27.60		$	29.19		$	30.65		$	29.46		$	31.07
Total Returne		(14.06	%)		(5.45	%)		(4.76	%)		4.04	%		(5.18	%)		(23.00	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,233		$	6,937		$	18,296		$	23,343		$	27,899		$	35,874
Ratios to average net assets:
Net investment income (loss)		(0.24	%)		(1.44	%)		(2.63	%)		(3.59	%)		(4.08	%)		(3.78	%)
Total expensesc		3.91	%		5.14	%		4.71	%		4.41	%		4.50	%		4.14	%
Net expensesd,g		3.89	%		5.13	%		4.71	%		4.41	%		4.50	%		4.14	%
Portfolio turnover rate		477	%		603	%		908	%		1,436	%		838	%		2,190	%

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	31.81		$	33.38		$	34.83		$	33.12		$	34.67		$	41.85
Income (loss) from investment operations:
Net investment income (loss)b		.07			(.20	)		(.65	)		(.92	)		(1.15	)		(.52	)
Net gain (loss) on investments (realized and unrealized)		(4.44	)		(1.37	)		(.80	)		2.63			(.40	)		(6.66	)
Total from investment operations		(4.37	)		(1.57	)		(1.45	)		1.71			(1.55	)		(7.18	)
Net asset value, end of period	$	27.44		$	31.81		$	33.38		$	34.83		$	33.12		$	34.67
Total Return		(13.74	%)		(4.70	%)		(4.16	%)		5.13	%		(4.47	%)		(17.16	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,959		$	9,561		$	4,858		$	43,784		$	72,833		$	43,800
Ratios to average net assets:
Net investment income (loss)		0.43	%		(0.58	%)		(1.94	%)		(2.80	%)		(3.17	%)		(2.75	%)
Total expensesc		3.32	%		4.37	%		4.00	%		3.60	%		3.61	%		3.07	%
Net expensesd,g		3.30	%		4.36	%		4.00	%		3.60	%		3.61	%		3.07	%
Portfolio turnover rate		477	%		603	%		908	%		1,436	%		838	%		2,190	%

a	Unaudited figures for the period ended September 30, 2019. 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	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Total return does not reflect the impact of any applicable sales charges.
f	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 is for the entire period of the Fund, not since the commencement of operations of the Class.
g	Total expenses may include interest expense related to short sales. Excluding interest expense, the operating expense ratios for the years presented were as follows:

	09/30/19	03/31/19	03/29/18	03/31/17	03/31/16	03/31/15
Investor Class	1.49%	1.50%	1.43%	1.43%	1.40%	1.40%
A-Class	1.74%	1.75%	1.68%	1.63%	1.65%	1.65%
C-Class	2.49%	2.50%	2.43%	2.43%	2.40%	2.41%
H-Class	1.74%	1.75%	1.68%	1.68%	1.65%	1.60%

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	9.8%
Guggenheim Strategy Fund III	7.9%
Guggenheim Ultra Short Duration Fund — Institutional Class	6.7%
Total	24.4%
“Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	4.61%	8.84%	5.55%	8.07%
A-Class Shares with sales charge‡	(0.36%)	3.66%	4.53%	7.54%
C-Class Shares	4.26%	8.00%	4.73%	7.25%
C-Class Shares with CDSC§	3.26%	7.00%	4.73%	7.25%
H-Class Shares	4.66%	8.72%	5.48%	8.07%
Bloomberg Barclays U.S. Corporate High Yield Index	3.87%	6.36%	5.37%	7.94%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays U.S. Corporate High Yield Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 135

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 24.4%
Guggenheim Strategy Fund II1		366,118	$	9,090,716
Guggenheim Strategy Fund III1		293,670		7,288,885
Guggenheim Ultra Short Duration Fund — Institutional Class1		627,851		6,253,391
Total Mutual Funds
(Cost $22,611,439)				22,632,992
	Face Amount
FEDERAL AGENCY NOTES†† - 39.7%
Federal Farm Credit Bank
2.20% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222	$	12,500,000		12,536,884
2.20% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222		2,500,000		2,494,402
Federal Home Loan Bank
2.06% (3 Month USD LIBOR - 0.23%, Rate Floor: 0.00%) due 05/04/202		8,000,000		7,998,264
1.75% due 07/13/20		2,840,000		2,835,456
Farmer Mac
1.98% (Fed Funds Effective Rate + 0.15%) due 09/23/202		5,000,000		4,999,030
Freddie Mac
2.85% due 05/06/24		2,000,000		2,001,485
1.75% due 10/25/19		2,000,000		1,999,662
Fannie Mae
1.75% due 07/24/20		2,000,000		1,998,114
Total Federal Agency Notes
(Cost $36,824,823)				36,863,297

	Face Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 13.2%
Federal Home Loan Bank
1.88% due 11/20/193	$	5,000,000	$	4,986,944
1.88% due 12/27/193		5,000,000		4,977,405
1.88% due 10/23/193		1,300,000		1,298,507
1.88% due 10/25/193		1,000,000		998,743
Total Federal Agency Discount Notes
(Cost $12,261,478)				12,261,599
U.S. TREASURY BILLS†† - 1.5%
U.S. Treasury Bills
1.93% due 10/29/193,4		1,410,000		1,407,952
Total U.S. Treasury Bills
(Cost $1,407,845)				1,407,952
REPURCHASE AGREEMENTS††,5 - 13.8%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/196		7,979,689		7,979,689
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/196		2,566,002		2,566,002
Barclays Capital issued 09/30/19 at 2.00% due 10/01/196		2,309,401		2,309,401
Total Repurchase Agreements
(Cost $12,855,092)				12,855,092
Total Investments - 92.6%
(Cost $85,960,677)			$	86,020,932
Other Assets & Liabilities, net - 7.4%				6,861,708
Total Net Assets - 100.0%			$	92,882,640

Futures Contracts
Description	Number of Contracts	Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Interest Rate Futures Contracts Purchased†
U.S. 5 Year Treasury Note Futures Contracts	709	Dec 2019	$	84,481,781	$	(346,084	)

Centrally Cleared Credit Default Swap Agreements Protection Sold††
Counterparty	Exchange	Index		Protection Premium Rate	Payment Frequency	Maturity Date	Notional Amount		Value		Upfront Premiums Paid		Unrealized Appreciation (Depreciation)**
Barclays Bank plc	ICE	CDX.NA.HY.33	5.00%		Quarterly	12/20/24	$	66,700,000	$	4,463,564	$	4,403,771	$	59,793
Goldman Sachs International	ICE	CDX.NA.HY.33	5.00%		Quarterly	12/20/24		17,100,000		1,144,332		1,152,796		(8,464	)
									$	5,607,896	$	5,556,567	$	51,329

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
HIGH YIELD STRATEGY FUND

Total Return Swap Agreements

Counterparty	Index	Financing Rate Pay		Payment Frequency	Maturity Date	Units		Notional Amount		Value and Unrealized Depreciation
OTC Credit Index Swap Agreements††,7
Goldman Sachs International	iShares iBoxx $ High Yield Corporate Bond ETF	2.27	%	At Maturity	10/25/19	50,711	$	4,420,478	$	(7,607	)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	Rate indicated is the effective yield at the time of purchase.
4	All or a portion of this security is pledged as futures and credit default swap collateral at September 30, 2019.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
7	Total return based on iShares iBoxx $ High Yield Corporate Bond ETF +/- financing at variable rate. Rate indicated is the rate effective September 30, 2019.
	CDX.NA.HY.33 Index — Credit Default Swap North American High Yield Series 33 Index
	ICE — Intercontinental Exchange
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	22,632,992	$	—	$	—	$	22,632,992
Federal Agency Notes		—		36,863,297		—		36,863,297
Federal Agency Discount Notes		—		12,261,599		—		12,261,599
U.S. Treasury Bills		—		1,407,952		—		1,407,952
Repurchase Agreements		—		12,855,092		—		12,855,092
Credit Default Swap Agreements**		—		59,793		—		59,793
Total Assets	$	22,632,992	$	63,447,733	$	—	$	86,080,725

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Interest Rate Futures Contracts**	$	346,084	$	—	$	—	$	346,084
Credit Default Swap Agreements**		—		8,464		—		8,464
Total Return Swap Agreements**		—		7,607		—		7,607
Total Liabilities	$	346,084	$	16,071	$	—	$	362,155

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
HIGH YIELD STRATEGY FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	9,083,393	$	—	$	—		$	—		$	7,323		$	9,090,716		366,118	$	125,013
Guggenheim Strategy Fund III		7,280,075		—		—			—			8,810			7,288,885		293,670		98,350
Guggenheim Ultra Short Duration Fund — Institutional Class		7,059,670		—		(800,001	)		(3,497	)		(2,781	)		6,253,391		627,851		90,445
	$	23,423,138	$	—	$	(800,001	)	$	(3,497	)	$	13,352		$	22,632,992			$	313,808

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

HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $50,494,146)	$	50,532,848
Investments in affiliated issuers, at value (cost $22,611,439)		22,632,992
Repurchase agreements, at value (cost $12,855,092)		12,855,092
Segregated cash with broker		45,500
Unamortized upfront premiums paid on credit default swap agreements		5,556,567
Receivables:
Fund shares sold		3,504,375
Protection fees on credit default swap agreements		126,806
Interest		102,774
Dividends		43,111
Total assets		95,400,065
Liabilities:
Segregated cash due to broker		717,990
Unrealized depreciation on OTC swap agreements		7,607
Payable for:
Fund shares redeemed		862,631
Variation margin on credit default swap agreements		665,019
Securities purchased		53,573
Management fees		48,570
Variation margin on futures contracts		26,947
Distribution and service fees		17,355
Transfer agent and administrative fees		16,590
Portfolio accounting fees		6,636
Trustees’ fees*		1,755
Swap settlement		1,394
Miscellaneous		91,358
Total liabilities		2,517,425
Commitments and contingent liabilities (Note 11)		—
Net assets	$	92,882,640
Net assets consist of:
Paid in capital	$	96,507,967
Total distributable earnings (loss)		(3,625,327	)
Net assets	$	92,882,640
A-Class:
Net assets	$	4,741,415
Capital shares outstanding		188,077
Net asset value per share	$	25.21
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.47
C-Class:
Net assets	$	1,339,443
Capital shares outstanding		60,821
Net asset value per share	$	22.02
H-Class:
Net assets	$	86,801,782
Capital shares outstanding		3,447,345
Net asset value per share	$	25.18

^* 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

HIGH YIELD STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	313,808
Interest		826,232
Total investment income		1,140,040
Expenses:
Management fees		353,364
Distribution and service fees
A-Class		8,249
C-Class		6,379
H-Class		107,945
Transfer agent and administrative fees		117,788
Portfolio accounting fees		47,115
Trustees’ fees*		10,793
Custodian fees		6,642
Line of credit fees		51
Miscellaneous		106,711
Total expenses		765,037
Less:
Expenses waived by Adviser		(8,177	)
Net expenses		756,860
Net investment income		383,180
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers	$	8,946
Investments in affiliated issuers		(3,497	)
Swap agreements		1,601,523
Futures contracts		2,722,520
Net realized gain		4,329,492
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		53,376
Investments in affiliated issuers		13,352
Swap agreements		(657,160	)
Futures contracts		(1,235,447	)
Net change in unrealized appreciation (depreciation)		(1,825,879	)
Net realized and unrealized gain		2,503,613
Net increase in net assets resulting from operations	$	2,886,793

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

140 | 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, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	383,180		$	898,884
Net realized gain on investments		4,329,492			2,382,426
Net change in unrealized appreciation (depreciation) on investments		(1,825,879	)		1,275,885
Net increase in net assets resulting from operations		2,886,793			4,557,195
Distributions to shareholders:
A-Class		—			(200,150	)
C-Class		—			(81,621	)
H-Class		—			(6,085,861	)
Total distributions to shareholders		—			(6,367,632	)
Capital share transactions:
Proceeds from sale of shares
A-Class		5,955,928			33,024,074
C-Class		715,435			3,722,190
H-Class		187,525,697			701,551,211
Distributions reinvested
A-Class		—			192,319
C-Class		—			71,233
H-Class		—			6,071,177
Cost of shares redeemed
A-Class		(9,110,883	)		(34,350,620	)
C-Class		(907,418	)		(6,368,793	)
H-Class		(204,474,272	)		(628,092,339	)
Net increase (decrease) from capital share transactions		(20,295,513	)		75,820,452
Net increase (decrease) in net assets		(17,408,720	)		74,010,015
Net assets:
Beginning of period		110,291,360			36,281,345
End of period	$	92,882,640		$	110,291,360
Capital share activity:
Shares sold
A-Class		242,518			1,392,434
C-Class		33,037			179,332
H-Class		7,581,213			29,879,785
Shares issued from reinvestment of distributions
A-Class		—			8,472
C-Class		—			3,572
H-Class		—			267,807
Shares redeemed
A-Class		(371,142	)		(1,446,445	)
C-Class		(42,280	)		(306,384	)
H-Class		(8,338,636	)		(26,969,778	)
Net increase (decrease) in shares		(895,290	)		3,008,795

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	24.10		$	23.26		$	24.74		$	23.32		$	23.84		$	22.89
Income (loss) from investment operations:
Net investment income (loss)b		.10			.14			(.08	)		(.20	)		(.09	)		(.15	)
Net gain (loss) on investments (realized and unrealized)		1.01			1.49			.62			2.09			.46			1.10
Total from investment operations		1.11			1.63			.54			1.89			.37			.95
Less distributions from:
Net investment income		—			(.79	)		(1.66	)		(.47	)		(.89	)		—
Net realized gains		—			—			(.36	)		—			—			—
Total distributions		—			(.79	)		(2.02	)		(.47	)		(.89	)		—
Net asset value, end of period	$	25.21		$	24.10		$	23.26		$	24.74		$	23.32		$	23.84
Total Returnc		4.61	%		7.18	%		2.08	%		8.24	%		1.66	%		4.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,741		$	7,631		$	8,427		$	20,290		$	11,787		$	10,123
Ratios to average net assets:
Net investment income (loss)		0.84	%		0.59	%		(0.31	%)		(0.85	%)		(0.40	%)		(0.63	%)
Total expensesd		1.61	%		1.61	%		1.52	%		1.51	%		1.49	%		1.50	%
Net expensese		1.60	%		1.60	%		1.52	%		1.51	%		1.49	%		1.50	%
Portfolio turnover rate		3	%		21	%		422	%		97	%		521	%		393	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	21.12		$	20.63		$	22.33		$	21.25		$	22.01		$	21.29
Income (loss) from investment operations:
Net investment income (loss)b		.01			(.04	)		(.22	)		(.36	)		(.19	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		.89			1.32			.54			1.91			.32			.99
Total from investment operations		.90			1.28			.32			1.55			.13			.72
Less distributions from:
Net investment income		—			(.79	)		(1.66	)		(.47	)		(.89	)		—
Net realized gains		—			—			(.36	)		—			—			—
Total distributions		—			(.79	)		(2.02	)		(.47	)		(.89	)		—
Net asset value, end of period	$	22.02		$	21.12		$	20.63		$	22.33		$	21.25		$	22.01
Total Returnc		4.26	%		6.39	%		1.35	%		7.38	%		0.70	%		3.33	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,339		$	1,480		$	3,994		$	4,533		$	2,020		$	3,632
Ratios to average net assets:
Net investment income (loss)		0.07	%		(0.21	%)		(1.00	%)		(1.65	%)		(0.88	%)		(1.25	%)
Total expensesd		2.36	%		2.35	%		2.27	%		2.26	%		2.24	%		2.25	%
Net expensese		2.34	%		2.35	%		2.27	%		2.26	%		2.24	%		2.25	%
Portfolio turnover rate		3	%		21	%		422	%		97	%		521	%		393	%

142 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	24.06		$	23.23		$	24.72		$	23.31		$	23.90		$	22.94
Income (loss) from investment operations:
Net investment income (loss)b		.10			.12			(.10	)		(.18	)		(.15	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		1.02			1.50			.63			2.06			.45			1.15
Total from investment operations		1.12			1.62			.53			1.88			.30			.96
Less distributions from:
Net investment income		—			(.79	)		(1.66	)		(.47	)		(.89	)		—
Net realized gains		—			—			(.36	)		—			—			—
Total distributions		—			(.79	)		(2.02	)		(.47	)		(.89	)		—
Net asset value, end of period	$	25.18		$	24.06		$	23.23		$	24.72		$	23.31		$	23.90
Total Return		4.66	%		7.15	%		2.08	%		8.15	%		1.36	%		4.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	86,802		$	101,180		$	23,860		$	435,334		$	783,018		$	621,455
Ratios to average net assets:
Net investment income (loss)		0.82	%		0.49	%		(0.41	%)		(0.74	%)		(0.64	%)		(0.81	%)
Total expensesd		1.61	%		1.60	%		1.52	%		1.51	%		1.49	%		1.46	%
Net expensese		1.60	%		1.60	%		1.52	%		1.51	%		1.49	%		1.46	%
Portfolio turnover rate		3	%		21	%		422	%		97	%		521	%		393	%

a	Unaudited figures for the period ended September 30, 2019. 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 expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT | 143

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	9.6%
Guggenheim Ultra Short Duration Fund — Institutional Class	3.4%
Total	13.0%
“Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	(3.89%)	(7.25%)	(6.94%)	(10.44%)
A-Class Shares with sales charge‡	(8.46%)	(11.64%)	(7.84%)	(10.87%)
C-Class Shares	(4.48%)	(8.19%)	(7.55%)	(11.08%)
C-Class Shares with CDSC§	(5.44%)	(9.11%)	(7.55%)	(11.08%)
H-Class Shares	(4.15%)	(7.52%)	(6.62%)	(10.27%)
Bloomberg Barclays U.S. Corporate High Yield Index	3.87%	6.36%	5.37%	7.94%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Bloomberg Barclays U.S. Corporate High Yield Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

144 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
INVERSE HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 13.0%
Guggenheim Strategy Fund II1		15,233	$	378,233
Guggenheim Ultra Short Duration Fund — Institutional Class1		13,420		133,665
Total Mutual Funds
(Cost $508,914)				511,898
	Face Amount
FEDERAL AGENCY NOTES†† - 17.8%
Federal Farm Credit Bank
2.20% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222	$	250,000		250,738
2.20% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222		200,000		199,552
Federal Home Loan Bank
2.44% (3 Month USD LIBOR + 0.13%, Rate Floor: 0.00%) due 07/01/202		250,000		250,489
Total Federal Agency Notes
(Cost $700,439)				700,779

	Face Amount		Value
U.S. TREASURY BILLS†† - 0.2%
U.S. Treasury Bills
1.93% due 10/29/193,4	$	9,000	$	8,987
Total U.S. Treasury Bills
(Cost $8,986)				8,987
REPURCHASE AGREEMENTS††,5 - 142.7%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19		3,484,298		3,484,298
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		1,120,434		1,120,434
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		1,008,391		1,008,391
Total Repurchase Agreements
(Cost $5,613,123)				5,613,123
Total Investments - 173.7%
(Cost $6,831,462)			$	6,834,787
Other Assets & Liabilities, net - (73.7)%				(2,901,092	)
Total Net Assets - 100.0%			$	3,933,695

Futures Contracts

Description	Number of Contracts	Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Interest Rate Futures Contracts Sold Short†
U.S. 5 Year Treasury Note Futures Contracts	31	Dec 2019	$	3,693,844	$	10,354

Centrally Cleared Credit Default Swap Agreements Protection Purchased^††

Counterparty	Exchange	Index	Protection Premium Rate		Payment Frequency	Maturity Date		Notional Amount		Value			Upfront Premiums Received			Unrealized Depreciation**
Barclays Bank plc	ICE	CDX. NA. HY. 33 Index	5.00	%	Quarterly	12/20/24	$	3,700,000	$	(247,604	)	$	(246,048	)	$	(1,556	)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at September 30, 2019.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
	CDX. NA. HY. 33 Index — Credit Default Swap North American High Yield Series 33 Index
	ICE — Intercontinental Exchange
	LIBOR — London Interbank Offered Rate
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
INVERSE HIGH YIELD STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	511,898	$	—	$	—	$	511,898
Federal Agency Notes		—		700,779		—		700,779
U.S. Treasury Bills		—		8,987		—		8,987
Repurchase Agreements		—		5,613,123		—		5,613,123
Interest Rate Futures Contracts**		10,354		—		—		10,354
Total Assets	$	522,252	$	6,322,889	$	—	$	6,845,141

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Credit Default Swap Agreements**	$	—	$	1,556	$	—	$	1,556

^** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:    

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	953,049	$	300,000	$	(875,000	)	$	68	$	116		$	378,233		15,233	$	8,548
Guggenheim Ultra Short Duration Fund — Institutional Class		958,824		600,000		(1,425,000	)		1,527		(1,686	)		133,665		13,420		4,631
	$	1,911,873	$	900,000	$	(2,300,000	)	$	1,595	$	(1,570	)	$	511,898			$	13,179

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

INVERSE HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $709,425)	$	709,766
Investments in affiliated issuers, at value (cost $508,914)		511,898
Repurchase agreements, at value (cost $5,613,123)		5,613,123
Segregated cash with broker		750,775
Receivables:
Interest		3,229
Variation margin on futures contracts		2,145
Dividends		1,077
Total assets		7,592,013
Liabilities:
Unamortized upfront premiums received on credit default swap agreements		246,048
Payable for:
Fund shares redeemed		3,169,280
Swap settlement		207,595
Variation margin on credit default swap agreements		17,318
Protection fees on credit default swap agreements		10,389
Management fees		1,606
Distribution and service fees		768
Transfer agent and administrative fees		544
Portfolio accounting fees		218
Trustees’ fees*		86
Miscellaneous		4,466
Total liabilities		3,658,318
Commitments and contingent liabilities (Note 11)		—
Net assets	$	3,933,695
Net assets consist of:
Paid in capital	$	14,251,916
Total distributable earnings (loss)		(10,318,221	)
Net assets	$	3,933,695
A-Class:
Net assets	$	282,949
Capital shares outstanding		4,868
Net asset value per share	$	58.12
Maximum offering price per share (Net asset value divided by 95.25%)	$	61.02
C-Class:
Net assets	$	388,089
Capital shares outstanding		7,287
Net asset value per share	$	53.26
H-Class:
Net assets	$	3,262,657
Capital shares outstanding		54,928
Net asset value per share	$	59.40

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	13,179
Interest		39,008
Total investment income		52,187
Expenses:
Management fees		16,771
Distribution and service fees
A-Class		1,505
C-Class		2,944
H-Class		3,350
Transfer agent and administrative fees		5,590
Registration fees		2,498
Portfolio accounting fees		2,236
Trustees’ fees*		644
Custodian fees		324
Miscellaneous		2,283
Total expenses		38,145
Less:
Expenses waived by Adviser		(442	)
Net expenses		37,703
Net investment income		14,484
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		1,595
Swap agreements		(201,150	)
Futures contracts		(264,517	)
Net realized loss		(464,072	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		614
Investments in affiliated issuers		(1,570	)
Swap agreements		26,690
Futures contracts		64,629
Net change in unrealized appreciation (depreciation)		90,363
Net realized and unrealized loss		(373,709	)
Net decrease in net assets resulting from operations	$	(359,225	)

^* 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 | 147

INVERSE HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	14,484		$	39,322
Net realized loss on investments		(464,072	)		(439,576	)
Net change in unrealized appreciation (depreciation) on investments		90,363			(31,984	)
Net decrease in net assets resulting from operations		(359,225	)		(432,238	)
Capital share transactions:
Proceeds from sale of shares
A-Class		24,576,534			22,769,190
C-Class		17,643			1,045,645
H-Class		50,197,734			67,200,629
Cost of shares redeemed
A-Class		(24,444,197	)		(31,262,861	)
C-Class		(342,623	)		(1,031,000	)
H-Class		(51,407,332	)		(70,863,890	)
Net decrease from capital share transactions		(1,402,241	)		(12,142,287	)
Net decrease in net assets		(1,761,466	)		(12,574,525	)
Net assets:
Beginning of period		5,695,161			18,269,686
End of period	$	3,933,695		$	5,695,161
Capital share activity:
Shares sold
A-Class		410,506			358,058
C-Class		323			17,880
H-Class		829,167			1,026,778
Shares redeemed
A-Class		(410,303	)		(489,454	)
C-Class		(6,278	)		(17,510	)
H-Class		(849,674	)		(1,084,207	)
Net decrease in shares		(26,259	)		(188,455	)

148 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	60.47		$	64.28		$	65.78		$	71.69		$	76.94		$	85.28
Income (loss) from investment operations:
Net investment income (loss)b		.23			.42			(.07	)		(.51	)		(.80	)		(.84	)
Net gain (loss) on investments (realized and unrealized)		(2.58	)		(4.23	)		(1.43	)		(5.40	)		(4.45	)		(7.50	)
Total from investment operations		(2.35	)		(3.81	)		(1.50	)		(5.91	)		(5.25	)		(8.34	)
Net asset value, end of period	$	58.12		$	60.47		$	64.28		$	65.78		$	71.69		$	76.94
Total Returnc		(3.89	%)		(5.93	%)		(2.28	%)		(8.26	%)		(6.81	%)		(9.59	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	283		$	282		$	8,746		$	915		$	2,642		$	372
Ratios to average net assets:
Net investment income (loss)		0.76	%		0.66	%		(0.12	%)		(0.74	%)		(1.07	%)		(1.02	%)
Total expensesd		1.60	%		1.60	%		1.52	%		1.52	%		1.50	%		1.52	%
Net expensese		1.59	%		1.60	%		1.52	%		1.52	%		1.50	%		1.52	%
Portfolio turnover rate		96	%		—			41	%		480	%		1,722	%		784	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	55.76		$	59.73		$	61.63		$	67.67		$	73.24		$	81.11
Income (loss) from investment operations:
Net investment income (loss)b		.03			.01			(.39	)		(.85	)		(1.16	)		(1.20	)
Net gain (loss) on investments (realized and unrealized)		(2.53	)		(3.98	)		(1.51	)		(5.19	)		(4.41	)		(6.67	)
Total from investment operations		(2.50	)		(3.97	)		(1.90	)		(6.04	)		(5.57	)		(7.87	)
Net asset value, end of period	$	53.26		$	55.76		$	59.73		$	61.63		$	67.67		$	73.24
Total Returnc		(4.48	%)		(6.65	%)		(3.08	%)		(8.97	%)		(7.59	%)		(9.49	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	388		$	738		$	769		$	1,042		$	1,653		$	734
Ratios to average net assets:
Net investment income (loss)		0.12	%		0.02	%		(0.65	%)		(1.32	%)		(1.60	%)		(1.53	%)
Total expensesd		2.36	%		2.36	%		2.27	%		2.27	%		2.25	%		2.25	%
Net expensese		2.33	%		2.35	%		2.27	%		2.27	%		2.25	%		2.25	%
Portfolio turnover rate		96	%		—			41	%		480	%		1,722	%		784	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	61.97		$	65.89		$	67.70		$	72.70		$	77.91		$	85.66
Income (loss) from investment operations:
Net investment income (loss)b		.22			.41			(.12	)		(.74	)		(.64	)		(.76	)
Net gain (loss) on investments (realized and unrealized)		(2.79	)		(4.33	)		(1.69	)		(4.26	)		(4.57	)		(6.99	)
Total from investment operations		(2.57	)		(3.92	)		(1.81	)		(5.00	)		(5.21	)		(7.75	)
Net asset value, end of period	$	59.40		$	61.97		$	65.89		$	67.70		$	72.70		$	77.91
Total Return		(4.15	%)		(5.95	%)		(2.67	%)		(6.90	%)		(6.67	%)		(8.84	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,263		$	4,675		$	8,755		$	14,855		$	2,513		$	2,124
Ratios to average net assets:
Net investment income (loss)		0.71	%		0.63	%		(0.18	%)		(1.06	%)		(0.84	%)		(0.93	%)
Total expensesd		1.61	%		1.61	%		1.52	%		1.52	%		1.50	%		1.51	%
Net expensese		1.59	%		1.59	%		1.52	%		1.52	%		1.50	%		1.51	%
Portfolio turnover rate		96	%		—			41	%		480	%		1,722	%		784	%

a	Unaudited figures for the period ended September 30, 2019. 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 expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
f	Reverse share split — Per share amounts for the years presented through March 31, 2017 have been restated to reflect a 1:4 share split effective November 4, 2016.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)

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

FADN — Federal Agency Discount Note

FAN — Federal Agency Note

Inception Date: June 18, 2012

The Fund invests principally in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities and enters into repurchase agreements fully collateralized by U.S. government securities.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	Since Inception (06/18/12)
U.S. Government Money Market Fund	0.67%	1.34%	0.40%	0.27%

*

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

†

6 month returns are not annualized.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 151

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
FEDERAL AGENCY NOTES†† - 49.9%
Federal Home Loan Bank
2.01% (3 Month USD LIBOR - 0.18%, Rate Floor: 0.00%) due 05/08/201	$	18,000,000	$	17,993,908
2.08% (3 Month USD LIBOR - 0.26%, Rate Floor: 0.00%) due 10/11/191		17,285,000		17,284,401
1.50% due 10/21/19		6,520,000		6,518,019
2.06% (3 Month USD LIBOR - 0.24%, Rate Floor: 0.00%) due 04/13/201		5,990,000		5,986,190
2.20% due 07/29/20		5,000,000		5,000,000
2.12% (3 Month USD LIBOR - 0.20%, Rate Floor: 0.00%) due 01/16/201		3,750,000		3,749,674
2.63% due 05/28/20		2,530,000		2,542,387
1.60% due 10/23/19		1,965,000		1,964,457
2.32% due 04/13/20		1,950,000		1,952,149
1.70% due 05/15/20		1,000,000		998,597
1.25% due 12/13/19		1,000,000		998,523
1.38% due 06/12/20		430,000		428,516
3.38% due 06/12/20		400,000		403,602
Farmer Mac
2.04% (U.S. Prime Rate - 2.96%, Rate Floor: 0.00%) due 12/23/191		28,000,000		28,000,000
1.98% (Fed Funds Effective Rate + 0.15%) due 09/23/201		20,000,000		20,000,000
1.98% (U.S. Prime Rate - 3.02%, Rate Floor: 0.00%) due 07/01/201		17,300,000		17,300,000
Fannie Mae
1.98% (3 Month USD LIBOR - 0.15%, Rate Floor: 0.00%) due 03/13/201		18,500,000		18,496,913
1.75% due 11/26/19		4,400,000		4,398,149
1.50% due 02/28/20		4,000,000		3,992,833
1.00% due 10/24/19		2,498,000		2,496,324
1.98% (U.S. Secured Overnight Financing Rate + 0.16%, Rate Floor: 0.00%) due 01/30/201		2,431,000		2,431,639
1.89% (U.S. Secured Overnight Financing Rate + 0.07%, Rate Floor: 0.00%) due 10/30/191		375,000		375,000
Federal Farm Credit Bank
2.05% (1 Month USD LIBOR + 0.01%, Rate Floor: 0.00%) due 07/30/201		13,000,000		12,999,843
1.94% (U.S. Prime Rate - 3.07%, Rate Floor: 0.00%) due 12/26/191		6,000,000		5,999,432
2.10% (3 Month USD LIBOR - 0.18%, Rate Floor: 0.00%) due 10/24/191		5,000,000		4,999,911
2.03% (U.S. Prime Rate - 2.97%, Rate Floor: 0.00%) due 01/24/201		2,000,000		1,999,933
2.42% due 01/24/20		1,000,000		1,001,453
2.14% (3 Month USD LIBOR - 0.12%, Rate Floor: 0.00%) due 01/27/201		1,000,000		1,000,033
1.42% due 05/13/20		300,000		299,128
Freddie Mac
1.30% due 11/27/19		4,400,000		4,393,944
2.00% due 04/27/202		2,640,000		2,638,714
1.25% due 10/28/19		1,500,000		1,499,104
1.38% due 05/01/20		1,327,000		1,322,683
Total Federal Agency Notes
(Cost $201,465,459)				201,465,459
FEDERAL AGENCY DISCOUNT NOTES†† - 28.1%
Federal Home Loan Bank
1.99% due 10/30/193		43,750,000		43,678,633
1.94% due 12/04/193		27,000,000		26,905,728
1.88% due 10/25/193		14,900,000		14,879,885
2.03% due 10/30/193		5,600,000		5,590,865
1.98% due 11/13/193		5,000,000		4,988,082
2.02% due 10/30/193		4,100,000		4,093,328
2.03% due 11/13/193		2,290,000		2,284,541
2.02% due 11/15/193		2,000,000		1,994,950
2.00% due 11/01/193		1,900,000		1,896,728
1.89% due 10/30/193		1,600,000		1,597,390
1.99% due 11/08/193		1,500,000		1,496,849
1.93% due 12/02/193		1,050,000		1,046,510
1.93% due 12/10/193		1,000,000		996,247
1.89% due 11/12/193		700,000		698,461
1.99% due 11/06/193		600,000		598,806
1.96% due 11/26/193		600,000		598,152
Total Federal Agency Discount Notes
(Cost $113,345,155)				113,345,155
U.S. TREASURY BILLS†† - 7.9%
U.S. Treasury Bills
2.01% due 01/30/203		17,000,000		16,883,379
1.84% due 03/19/203		15,000,000		14,867,471
Total U.S. Treasury Bills
(Cost $31,750,850)				31,750,850
REPURCHASE AGREEMENTS††,4 - 16.3%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19		40,850,249		40,850,249
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		13,136,078		13,136,078
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		11,822,470		11,822,470
Total Repurchase Agreements
(Cost $65,808,797)				65,808,797
Total Investments - 102.2%
(Cost $412,370,261)			$	412,370,261
Other Assets & Liabilities, net - (2.2)%				(8,800,507	)
Total Net Assets - 100.0%			$	403,569,754

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
U.S. GOVERNMENT MONEY MARKET FUND

††	Value determined based on Level 2 inputs — See Note 4.
1	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
2	Security is a step up bond, with a 2.00% coupon rate until October 27, 2019. Future rate is 3.00% with a reset date of October 28, 2019.
3	Rate indicated is the effective yield at the time of purchase.
4	Repurchase Agreements — See Note 6.
	LIBOR — London Interbank Offered Rate
	See Sector Classification in Other Information section.

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Federal Agency Notes	$	—	$	201,465,459	$	—	$	201,465,459
Federal Agency Discount Notes		—		113,345,155		—		113,345,155
U.S. Treasury Bills		—		31,750,850		—		31,750,850
Repurchase Agreements		—		65,808,797		—		65,808,797
Total Assets	$	—	$	412,370,261	$	—	$	412,370,261

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

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value (cost $346,561,464)	$	346,561,464
Repurchase agreements, at value (cost $65,808,797)		65,808,797
Receivables:
Fund shares sold		12,785,696
Interest		597,069
Total assets		425,753,026
Liabilities:
Overdraft due to custodian bank		1,257
Payable for:
Fund shares redeemed		21,489,256
Management fees		163,789
Transfer agent and administrative fees		65,516
Portfolio accounting fees		29,363
Trustees’ fees*		8,100
Distributions to shareholders		2,166
Miscellaneous		423,825
Total liabilities		22,183,272
Commitments and contingent liabilities (Note 11)		—
Net assets	$	403,569,754
Net assets consist of:
Paid in capital	$	403,460,763
Total distributable earnings (loss)		108,991
Net assets	$	403,569,754
Capital shares outstanding		403,439,739
Net asset value per share	$	1.00

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Interest	$	5,202,303
Total investment income		5,202,303
Expenses:
Management fees		1,091,014
Transfer agent and administrative fees		436,410
Registration fees		207,856
Portfolio accounting fees		194,777
Trustees’ fees*		56,353
Custodian fees		30,889
Miscellaneous		275,850
Total expenses		2,293,149
Net investment income		2,909,154
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		13,490
Net realized gain		13,490
Net increase in net assets resulting from operations	$	2,922,644

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

154 | 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, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,909,154		$	5,349,868
Net realized gain on investments		13,490			23,456
Net change in unrealized appreciation (depreciation) on investments		—			—
Net increase in net assets resulting from operations		2,922,644			5,373,324
Distributions to shareholders		(2,909,142	)		(5,349,868	)
Capital share transactions:
Proceeds from sale of shares		3,168,290,887			6,239,411,232
Distributions reinvested		2,889,845			5,296,314
Cost of shares redeemed		(3,180,824,143	)		(6,376,058,992	)
Net decrease from capital share transactions		(9,643,411	)		(131,351,446	)
Net decrease in net assets		(9,629,909	)		(131,327,990	)
Net assets:
Beginning of period		413,199,663			544,527,653
End of period	$	403,569,754		$	413,199,663
Capital share activity:
Shares sold		3,167,316,884			6,239,411,231
Shares issued from reinvestment of distributions		2,890,079			5,293,026
Shares redeemed		(3,179,850,140	)		(6,376,058,978	)
Net decrease in shares		(9,643,177	)		(131,354,721	)

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

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.

	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income (loss)b		.01			.01			—	c		—	c		—	c		—	c
Net gain (loss) on investments (realized and unrealized)		—			—			—	c		—	c		—	c		—	c
Total from investment operations		.01			.01			—	c		—	c		—	c		—	c
Less distributions from:
Net investment income		(.01	)		(.01	)		(—	)c		(—	)c		(—	)c		(—	)c
Net realized gains		—			—			—			(—	)c		—			(—	)c
Total distributions		(.01	)		(.01	)		(—	)c		(—	)c		(—	)c		(—	)c
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return		0.67	%		1.10	%		0.22	%		0.01	%		0.00	%		0.00	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	403,570		$	413,200		$	544,528		$	627,514		$	643,872		$	694,549
Ratios to average net assets:
Net investment income (loss)		1.33	%		1.10	%		0.22	%		0.00	%d		0.00	%d		0.00	%d
Total expenses		1.05	%		1.05	%		0.96	%		0.95	%		0.91	%		0.92	%
Net expensese		1.05	%		1.05	%		0.94	%		0.47	%		0.22	%		0.08	%
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2019. 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	Less than $0.01 per share.
d	Less than 0.01%.
e	Net expense information reflects the expense ratio after expense waivers, as applicable.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (“1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate Fund (each, a “Fund”). The Trust 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. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2019, the Trust consisted of fifty-two funds.

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

Fund Name	Investment Company Type
Nova Fund	Non-diversified
S&P 500® Fund	Non-diversified
Inverse S&P 500® Strategy Fund	Non-diversified
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Non-diversified
Inverse NASDAQ-100® Strategy Fund	Non-diversified
Mid-Cap 1.5x Strategy Fund	Non-diversified
Inverse Mid-Cap Strategy Fund	Non-diversified
Russell 2000® 1.5x Strategy Fund	Non-diversified
Russell 2000® Fund	Non-diversified
Inverse Russell 2000® Strategy Fund	Non-diversified
Dow Jones Industrial Average® Fund	Non-diversified
Government Long Bond 1.2x Strategy Fund	Non-diversified
Inverse Government Long Bond Strategy Fund	Non-diversified
High Yield Strategy Fund	Non-diversified
Inverse High Yield Strategy Fund	Non-diversified
U.S. Government Money Market Fund	Diversified

At September 30, 2019, Investor 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.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

Significant Accounting Policies

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 157

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually at 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, 2019, afternoon NAV.

(a) Valuation of Investments

The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures, 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.

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

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

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

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. Money market funds are valued at their NAV.

The value of futures contracts is accounted for using the unrealized appreciation or depreciation on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The values of over-the-counter (“OTC”) swap agreements and credit default swap agreements entered into by a fund are accounted for using the unrealized appreciation or depreciation on the agreements that are determined by marking the agreements to the last quoted value of the index that the swaps pertain to at the close of the NYSE.

Investments for which market quotations are not readily available are fair-valued as determined in good faith by GI, subject to review and approval by the Valuation Committee, pursuant to methods established or ratified by the Board. Valuations in accordance with these methods are intended to reflect each security’s (or asset’s or liability’s) “fair value”. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. Examples of such factors may

158 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

include, but are not limited to market prices; sale prices; broker quotes; and models which derive prices based on inputs such as prices of securities with comparable maturities and characteristics, or based on inputs such as anticipated cash flows or collateral, spread over U.S. Treasury securities, and other information analysis.

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

(b) U.S. Government and Agency Obligations

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

(c) Short Sales

When a Fund engages in a short sale of a security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales.

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

(d) Futures Contracts

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

(e) Swap Agreements

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

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) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of September 30, 2019, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

(g) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts (“REITs”) is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 159

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(h) Distributions

Dividends from net investment income are declared daily in the Government Long Bond 1.2x Strategy Fund and the U.S. Government Money Market Fund. 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 U.S. federal income tax regulations which may differ from U.S. GAAP.

(i) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust based on the respective net assets of each Fund included in the Trust.

(j) Cash

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 1.90% at September 30, 2019.

(k) Indemnifications

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

Note 2 – Financial Instruments and Derivatives

As part of their investment strategy, the Funds utilize short sales and a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized 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:

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

160 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

Futures Contracts

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

The following table represents the Funds’ use and volume of futures on a quarterly basis:

		Average Notional Amount
Fund	Use	Long			Short
Nova Fund	Index exposure, Leverage, Liquidity	$	19,883,056		$	—
S&P 500® Fund	Index exposure, Liquidity		3,392,500			—
Inverse S&P 500® Strategy Fund	Index exposure, Liquidity		—			1,618,788
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Index exposure, Leverage, Liquidity		18,274,148			—
Inverse NASDAQ-100® Strategy Fund	Index exposure, Liquidity		—			155,355
Mid-Cap 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		193,820			195,280
Russell 2000® 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		—	*		—
Russell 2000® Fund	Index exposure, Liquidity		1,562,408			—
Inverse Russell 2000® Strategy Fund	Index exposure, Liquidity		—			767,563
Dow Jones Industrial Average® Fund	Index exposure, Liquidity		4,230,788			—
Government Long Bond 1.2x Strategy Fund	Duration, Index exposure, Leverage, Liquidity		69,855,219			—
Inverse Government Long Bond Strategy Fund	Duration, Index exposure, Liquidity		—			32,525,078
High Yield Strategy Fund	Duration, Index exposure, Liquidity		87,541,828			—
Inverse High Yield Strategy Fund	Duration, Index exposure, Liquidity		—			2,614,734

^* Futures contracts were outstanding for 90 days during the period ended September 30, 2019. The daily average outstanding notional amount of equity futures contracts during the period was $118,790.

Swap Agreements

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing OTC swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. Upon entering into certain centrally-cleared swap transactions, the Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin payments or receipts are made or received by the Fund, depending on fluctuations in the fair value of the reference entity. For a fund utilizing centrally cleared swaps, the exchange bears the risk of loss resulting from a counterparty note being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Total return swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as an index) for a fixed or variable interest rate. Total return swaps will usually be computed based on the current value of the reference asset as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued,

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 161

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

financing charges and/or interest associated with the swap agreement. A fund utilizing a total return 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 reference asset declines in value.

The following table represents the Funds’ use and volume of total return swaps on a quarterly basis:

		Average Notional Amount
Fund	Use	Long		Short
Nova Fund	Index exposure, Leverage, Liquidity	$	210,548,373	$	—
S&P 500® Fund	Index exposure, Liquidity		14,635,285		—
Inverse S&P 500® Strategy Fund	Index exposure, Liquidity		—		58,636,437
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Index exposure, Leverage, Liquidity		187,489,130		—
Inverse NASDAQ-100® Strategy Fund	Index exposure, Liquidity		—		7,407,786
Mid-Cap 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		25,591,555		—
Inverse Mid-Cap Strategy Fund	Index exposure, Liquidity		—		1,153,996
Russell 2000® 1.5x Strategy Fund	Index exposure, Leverage, Liquidity		12,559,192		—
Russell 2000® Fund	Index exposure, Liquidity		23,044,811		—
Inverse Russell 2000® Strategy Fund	Index exposure, Liquidity		—		5,824,587
Dow Jones Industrial Average® Fund	Index exposure, Liquidity		6,318,264		—
High Yield Strategy Fund	Duration, Index exposure, Liquidity		9,065,377		—

Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A fund enters into credit default swaps as a “seller” or “buyer” of protection primarily to gain or reduce exposure to the high yield bond market. A seller of credit default swaps is selling credit protection or assuming credit risk with respect to the underlying entity or entities. The buyer in a credit default swap is obligated to pay the seller a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If a credit event occurs, as defined under the terms of the swap agreement, the seller will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The Notional Amount reflects the maximum potential amount the seller of credit protection could be required to pay to the buyer if a credit event occurs. The seller of protection receives periodic premium payments from the buyer and may also receive or pay an upfront premium adjustment to the stated periodic payments. In the event a credit default occurs on a credit default swap referencing an index, a factor adjustment will take place and the buyer of protection will receive a payment reflecting the par less the default recovery rate of the defaulted index component based on its weighting in the index. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the fund selling the credit protection. For a fund utilizing centrally cleared credit default swaps, the exchange bears the risk of loss. For OTC credit default swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which a fund is selling credit protection, the default of a third party issuer.

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The following table represents the Funds’ use and volume of credit default swaps on a quarterly basis:

		Average Notional Amount
Fund	Use	Protection Purchased		Protection Sold
High Yield Strategy Fund	Duration, Index exposure, Liquidity	$	—	$	87,150,000
Inverse High Yield Strategy Fund	Duration, Index exposure, Liquidity		2,600,000		—

162 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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, 2019:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Interest Rate contracts	Variation margin on futures contracts	Variation margin on futures contracts
Equity/Credit contracts	Unrealized appreciation on OTC swap agreements	Unrealized depreciation on OTC swap agreements
Credit contracts	Variation margin on credit default swap agreements	Variation margin on credit default swap agreements
	Unamortized upfront premiums paid on credit default swap agreements	Unamortized upfront premiums received on credit default swap agreements

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at September 30, 2019:

Asset Derivative Investments Value
Fund	Futures Equity Risk*		Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk		Total Value at September 30, 2019
S&P 500® Fund	$	—	$	8,372	$	—	$	—	$	8,372
Inverse S&P 500® Strategy Fund		—		22,881		—		—		22,881
Inverse NASDAQ-100® Strategy Fund		4,470		25,617		—		—		30,087
Inverse Mid-Cap Strategy Fund		—		2,780		—		—		2,780
Inverse Russell 2000® Strategy Fund		47,624		44,387		—		—		92,011
Dow Jones Industrial Average® Fund		—		1,206		—		—		1,206
Inverse Government Long Bond Strategy Fund		—		—		440,503		—		440,503
High Yield Strategy Fund		—		—		—		59,793		59,793
Inverse High Yield Strategy Fund		—		—		10,354		—		10,354

Liability Derivative Investments Value
Fund	Futures Equity Risk*		Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk		Total Value at September 30, 2019
Nova Fund	$	3,398	$	70,805	$	—	$	—	$	74,203
S&P 500® Fund		4,952		10,771		—		—		15,723
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		15,388		710,422		—		—		725,810
Mid-Cap 1.5x Strategy Fund		2,534		44,527		—		—		47,061
Russell 2000® 1.5x Strategy Fund		—		117,861		—		—		117,861
Russell 2000® Fund		25,192		228,210		—		—		253,402
Dow Jones Industrial Average® Fund		11,105		4,430		—		—		15,535
Government Long Bond 1.2x Strategy Fund		—		—		351,574		—		351,574
High Yield Strategy Fund		—		_		346,084		16,071		362,155
Inverse High Yield Strategy Fund		—		—		—		1,556		1,556

^* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. Variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the period ended September 30, 2019:

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 RYDEX FUNDS SEMI-ANNUAL REPORT | 163

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, 2019:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk			Swaps Credit Risk			Total
Nova Fund	$	4,766,587		$	(358,178	)	$	—		$	—		$	4,408,409
S&P 500® Fund		(258,680	)		1,462,372			—			—			1,203,692
Inverse S&P 500® Strategy Fund		(177,263	)		(4,148,911	)		—			—			(4,326,174	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		661,128			(2,426,169	)		—			—			(1,765,041	)
Inverse NASDAQ-100® Strategy Fund		(28,897	)		(1,331,179	)		—			—			(1,360,076	)
Mid-Cap 1.5x Strategy Fund		(101,923	)		626,774			—			—			524,851
Inverse Mid-Cap Strategy Fund		—			(37,422	)		—			—			(37,422	)
Russell 2000® 1.5x Strategy Fund		(5,481	)		354,602			—			—			349,121
Russell 2000® Fund		(71,792	)		(167,676	)		—			—			(239,468	)
Inverse Russell 2000® Strategy Fund		(144,329	)		(605,914	)		—			—			(750,243	)
Dow Jones Industrial Average® Fund		140,544			600,615			—			—			741,159
Government Long Bond 1.2x Strategy Fund		—			—			11,388,198			—			11,388,198
Inverse Government Long Bond Strategy Fund		—			—			(5,530,662	)		—			(5,530,662	)
High Yield Strategy Fund		—			—			2,722,520			1,601,523			4,324,043
Inverse High Yield Strategy Fund		—			—			(264,517	)		(201,150	)		(465,667	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk			Swaps Credit Risk			Total
Nova Fund	$	(2,983,080	)	$	(1,402,294	)	$	—		$	—		$	(4,385,374	)
S&P 500® Fund		(5,073	)		(191,519	)		—			—			(196,592	)
Inverse S&P 500® Strategy Fund		17,143			611,639			—			—			628,782
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		(850,352	)		(1,914,399	)		—			—			(2,764,751	)
Inverse NASDAQ-100® Strategy Fund		18,387			96,974			—			—			115,361
Mid-Cap 1.5x Strategy Fund		(38,657	)		(355,904	)		—			—			(394,561	)
Inverse Mid-Cap Strategy Fund		—			12,824			—			—			12,824
Russell 2000® 1.5x Strategy Fund		—			(227,959	)		—			—			(227,959	)
Russell 2000® Fund		(27,189	)		(385,141	)		—			—			(412,330	)
Inverse Russell 2000® Strategy Fund		61,081			155,476			—			—			216,557
Dow Jones Industrial Average® Fund		(10,807	)		(136,211	)		—			—			(147,018	)
Government Long Bond 1.2x Strategy Fund		—			—			(2,806,772	)		—			(2,806,772	)
Inverse Government Long Bond Strategy Fund		—			—			951,495			—			951,495
High Yield Strategy Fund		—						(1,235,447	)		(657,160	)		(1,892,607	)
Inverse High Yield Strategy Fund		—			—			64,629			26,690			91,319

In conjunction with short sales and and the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

Note 3 – Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

164 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
S&P 500® Fund	Swap equity contracts	$	8,372	$	—	$	8,372	$	—	$	—	$	8,372
Inverse S&P 500® Strategy Fund	Swap equity contracts		22,881		—		22,881		—		—		22,881
Inverse NASDAQ-100® Strategy Fund	Swap equity contracts		25,617		—		25,617		—		—		25,617
Inverse Mid-Cap Strategy Fund	Swap equity contracts		2,780		—		2,780		—		—		2,780
Inverse Russell 2000® Strategy Fund	Swap equity contracts		44,387		—		44,387		—		—		44,387
Dow Jones Industrial Average® Fund	Swap equity contracts		1,206		—		1,206		—		—		1,206

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 165

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
Nova Fund	Swap equity contracts	$	70,805	$	—	$	70,805	$	(56,224	)	$	(14,581	)	$	—
S&P 500® Fund	Swap equity contracts		10,771		—		10,771		(182	)		(690	)		(9,899	)
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Swap equity contracts		710,422		—		710,422		(696,371	)		(2,438	)		11,613
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		44,527		—		44,527		(38,057	)		(6,470	)		—
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		117,861		—		117,861		(5,987	)		(51,454	)		60,420
Russell 2000® Fund	Swap equity contracts		228,210		—		228,210		(170,752	)		(53,520	)		3,938
Dow Jones Industrial Average® Fund	Swap equity contracts		4,430		—		4,430		(4,430	)		—			—
High Yield Strategy Fund	Swap credit contracts		7,607		—		7,607		(7,607	)		—			—

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of September 30, 2019.

Fund	Counterparty	Asset Type	Cash Pledged		Cash Received
Nova Fund	Barclays Bank plc	Total return swap agreements	$	52,554	$	—
S&P 500® Fund	Barclays Bank plc	Total return swap agreements		3,145		—
	Goldman Sachs Group	Futures contracts		11,992		—
S&P 500® Fund Total				15,137		—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund	Barclays Bank plc	Total return swap agreements		2,438		—
	Goldman Sachs Group	Futures contracts		398,644		—
Monthly Rebalance NASDAQ-100® 2x Strategy Fund Total				401,082		—
Inverse NASDAQ-100® Strategy Fund	Barclays Bank plc	Total return swap agreements		920		—
Mid-Cap 1.5x Strategy Fund	Barclays Bank plc	Total return swap agreements		42,408		—
Russell 2000® 1.5x Strategy Fund	Barclays Bank plc	Total return swap agreements		64,220		—
Russell 2000® Fund	Barclays Bank plc	Total return swap agreements		53,520		—
	Goldman Sachs Group	Futures contracts		243,026		—
Russell 2000® Fund Total				296,546		—
Inverse Russell 2000® Strategy Fund	Barclays Bank plc	Total return swap agreements		1,399		—
Dow Jones Industrial Average® Fund	Barclays Bank plc	Total return swap agreements		1,942		—
	Goldman Sachs Group	Futures contracts		126,291		—
Dow Jones Industrial Average® Fund Total				128,233		—
High Yield Strategy Fund	Barclays Bank plc	Credit default swap agreements		—		79,349
	Goldman Sachs Group	Credit default swap agreements		—		638,641
	Goldman Sachs Group	Futures contracts		45,500		—
High Yield Strategy Fund Total				45,500		717,990
Inverse High Yield Strategy Fund	Barclays Bank plc	Credit default swap agreements		714,917		—
	Goldman Sachs Group	Futures contracts		35,858		—
Inverse High Yield Strategy Fund Total				750,775		—

166 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 4 – Fair Value Measurement

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

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

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

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

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

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

Note 5 – Investment Advisory Agreement and Other Agreements

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

Fund	Management Fees (as a % of Net Assets)
Nova Fund		0.75	%
S&P 500® Fund		0.75	%
Inverse S&P 500® Strategy Fund		0.90	%
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		0.90	%
Inverse NASDAQ-100® Strategy Fund		0.90	%
Mid-Cap 1.5x Strategy Fund		0.90	%
Inverse Mid-Cap Strategy Fund		0.90	%
Russell 2000® 1.5x Strategy Fund		0.90	%
Russell 2000® Fund		0.75	%
Inverse Russell 2000® Strategy Fund		0.90	%
Dow Jones Industrial Average® Fund		0.75	%
Government Long Bond 1.2x Strategy Fund		0.50	%
Inverse Government Long Bond Strategy Fund		0.90	%
High Yield Strategy Fund		0.75	%
Inverse High Yield Strategy Fund		0.75	%
U.S. Government Money Market Fund		0.50	%

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

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million — $1 billion		0.025	%
> $1 billion — $2 billion		0.05	%
> $2 billion		0.075	%

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 167

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.

For the period ended September 30, 2019, GFD retained sales charges of $42,539 relating to sales of A-Class shares of the Trust.

If a Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund’s adviser has agreed to waive fees at the investing fund level to the extent necessary to offset the proportionate share of any management fee paid by each Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap, if any, in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the period ended September 30, 2019, the following Funds waived fees related to investments in affiliated funds:

Fund	Amount Waived
Nova Fund	$	13,401
Inverse S&P 500® Strategy Fund		6,509
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		8,509
Inverse NASDAQ-100® Strategy Fund		2,345
Mid-Cap 1.5x Strategy Fund		5,084
Inverse Mid-Cap Strategy Fund		384
Russell 2000® 1.5x Strategy Fund		2,807
Inverse Russell 2000® Strategy Fund		1,355
Dow Jones Industrial Average® Fund		4,289
Government Long Bond 1.2x Strategy Fund		13,044
Inverse Government Long Bond Strategy Fund		7,774
High Yield Strategy Fund		8,177
Inverse High Yield Strategy Fund		442

GI has contractually agreed through August 1, 2021 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.

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

168 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS is responsible for maintaining the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets and out of pocket expenses.

Note 6 – Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2019, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
JPMorgan Chase & Co.					U.S. Treasury Note
2.35%					1.75%
Due 10/01/19	$	194,737,402	$	194,750,114	06/30/22	$	196,919,400	$	198,632,205
Bank of America Merrill Lynch					U.S. TIP Note
2.28%					1.25%
Due 10/01/19		62,621,053		62,625,019	07/15/20		63,404,852		63,873,490
Barclays Capital					U.S. Treasury Bond
2.00%					3.38%
Due 10/01/19		56,358,948		56,362,079	05/15/44		45,816,100		57,486,205

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

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 169

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2019, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested			Cash Collateral Uninvested		Total Collateral
Nova Fund	$	179,738	$	(179,738	)	$	—	$	182,654		$	—	$	182,654
S&P 500® Fund		171,392		(171,392	)		—		174,214			—		174,214
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		437,661		(437,661	)		—		448,799			—		448,799
Mid-Cap 1.5x Strategy Fund		6,076		(6,076	)		—		6,079			—		6,079
Russell 2000® Fund		—		—			—		17,293	*		—		17,293

*	The Fund sold all loaned positions as of period end. The return of collateral typically takes place one business day following the return of the securities loaned, hence the cash collateral received was still held at September 30, 2019.
(a)	Actual collateral received by the Fund is greater than the amount shown due to overcollateralization.

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

Note 8 – Federal Income Tax Information

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

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

170 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2019, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost, and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Nova Fund	$	334,855,984	$	—	$	(22,458,364	)	$	(22,458,364	)
S&P 500® Fund		118,556,248		27,084,403		(657,530	)		26,426,873
Inverse S&P 500® Strategy Fund		69,824,226		73,244		(33,446	)		39,798
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		173,172,269		—		(11,576,824	)		(11,576,824	)
Inverse NASDAQ-100® Strategy Fund		7,839,990		38,542		(3,085	)		35,457
Mid-Cap 1.5x Strategy Fund		15,672,957		90,607		(126,413	)		(35,806	)
Inverse Mid-Cap Strategy Fund		861,739		2,897		—			2,897
Russell 2000® 1.5x Strategy Fund		8,190,847		866		(138,438	)		(137,572	)
Russell 2000® Fund		35,761,619		11,799		(268,269	)		(256,470	)
Inverse Russell 2000® Strategy Fund		6,725,152		95,579		(1,719	)		93,860
Dow Jones Industrial Average® Fund		37,196,526		2,247,225		(134,247	)		2,112,978
Government Long Bond 1.2x Strategy Fund		135,577,505		—		(5,631,868	)		(5,631,868	)
Inverse Government Long Bond Strategy Fund		49,657,786		1,075,206		(16,061	)		1,059,145
High Yield Strategy Fund		85,971,527		133,676		(386,633	)		(252,957	)
Inverse High Yield Strategy Fund		6,831,756		13,864		(2,035	)		11,829
U.S. Government Money Market Fund		412,370,261		—		—			—

Note 9 – Securities Transactions

For the period ended September 30, 2019, 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	$	971,576,154	$	978,523,562
S&P 500® Fund		119,635,704		122,256,711
Inverse S&P 500® Strategy Fund		5,284,181		4,500,000
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		517,664,472		486,781,279
Inverse NASDAQ-100® Strategy Fund		629,307		2,150,000
Mid-Cap 1.5x Strategy Fund		567,469		74,749
Russell 2000® 1.5x Strategy Fund		538		1,601,827
Russell 2000® Fund		3,321,683		31,755,347
Inverse Russell 2000® Strategy Fund		359,604		800,000
Dow Jones Industrial Average® Fund		38,070,862		58,720,018
Government Long Bond 1.2x Strategy Fund		6,300,000		1,860,000
High Yield Strategy Fund		2,002,260		800,001
Inverse High Yield Strategy Fund		900,000		2,300,000

For the period ended September 30, 2019, the cost of purchases and proceeds from sales of government securities were as follows:

Fund	Purchases		Sales
Government Long Bond 1.2x Strategy Fund	$	911,672,703	$	957,955,016
Inverse Government Long Bond Strategy Fund		257,638,906		250,975,891

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 171

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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, 2019, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain (Loss)
Nova Fund	$	119,070,047	$	148,970,941	$	(1,448,822	)
S&P 500® Fund		86,989,080		56,151,808		3,777,728
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		67,283,841		27,795,254		(579,806	)
Mid-Cap 1.5x Strategy Fund		496,644		—		—
Russell 2000® 1.5x Strategy Fund		—		645,308		169,995
Russell 2000® Fund		1,350,975		8,623,380		(131,964	)
Dow Jones Industrial Average® Fund		5,900,402		9,803,327		365,913

Note 10 – Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 8, 2020. 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 3.41% for the period ended September 30, 2019. The Funds did not have any borrowings outstanding under this agreement at September 30, 2019.

The average daily balances borrowed for the period ended September 30, 2019, were as follows:

Fund	Average Daily Balance
Nova Fund	$	65,770
Monthly Rebalance NASDAQ-100® 2x Strategy Fund		4,459
Inverse NASDAQ-100® Strategy Fund		3,115
Government Long Bond 1.2x Strategy Fund		3,082
Inverse Government Long Bond Strategy Fund		142
High Yield Strategy Fund		2,891

Note 11 – Legal Proceedings

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

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

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2296 (S.D.N.Y.) (the “MDL Proceeding”).

172 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments.

On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.”

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intends to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 173

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

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

Note 12 – Subsequent Events

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

174 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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.

Special Meeting of Shareholders — Voting Results

A joint special meeting of shareholders of the Trust was held on October 24, 2019 to elect the following ten nominees to the Board of Trustees of the Trust: Randall C. Barnes, Angela Brock-Kyle, Donald A. Chubb, Jr., Jerry B. Farley, Roman Friedrich III, Thomas F. Lydon, Jr., Ronald A. Nyberg, Sandra G. Sponem, Ronald E. Toupin, Jr. and Amy J. Lee. At the meeting, the following votes were recorded:

Nominee	Shares For		Shares Withheld
Randall C. Barnes		182,013,322		3,038,253
Angela Brock-Kyle		182,013,119		3,038,456
Donald A. Chubb, Jr.		182,008,520		3,043,055
Jerry B. Farley		181,911,245		3,140,330
Roman Friedrich III		181,912,825		3,138,750
Thomas F. Lydon, Jr.		181,907,886		3,143,689
Ronald A. Nyberg		181,907,937		3,143,638
Sandra G. Sponem		181,907,670		3,143,905
Ronald E. Toupin, Jr.		181,906,696		3,144,879
Amy J. Lee		182,013,277		3,038,298

Corey A. Colehour and J. Kenneth Dalton resigned from the Board of Trustees of the Trust effective as of the conclusion of the quarterly meeting of the Board of Trustees of the Trust held on November 11, 2019.

Sector Classification

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

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-PORT and 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 Investment Advisory Agreement

The Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”), each of whom is not an “interested person,” as defined by the Investment Company Act of 1940 (the “1940 Act”), of the Trust (the “Independent Trustees”), attended an in-person meeting held on May 20, 2019 (the “May Meeting”), called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the Advisory Agreement dated March 1, 2012, as amended, between the Trust and Security Investors, LLC (the “Advisor”), pursuant to which the Advisor serves as investment adviser to each series of the Trust (each, a “Fund” and collectively, the “Funds”)(the “Advisory Agreement”). Consistent with its practice, the Board considered information pertaining to the renewal of the Advisory Agreement at an in-person meeting held

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 175

OTHER INFORMATION (Unaudited)(continued)

on April 24, 2019 (the “April Meeting” and, together with the May Meeting, the “Meetings”). After careful consideration, the Board unanimously approved, at the May Meeting, the continuance of the Advisory Agreement for an additional one-year term based on the Board’s review of qualitative and quantitative information provided by the Advisor. In the course of its consideration, the Board deemed the materials provided by the Advisor at, and prior to, the Meetings to be instrumental in the Trustees’ deliberations and their process in considering the continuation of the Advisory Agreement. The Board also considered the review it conducted at each Meeting, as augmented by additional teleconference meetings prior to each Meeting, to be integral to its consideration of the continuation of the Advisory Agreement.

Prior to reaching the conclusion to approve the continuation of the Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as they deemed reasonably necessary to evaluate the Advisory Agreement. In addition, the Board received a memorandum from independent legal counsel to the Independent Trustees regarding the Board’s fiduciary responsibilities under state and federal law with respect to the Board’s consideration of the continuation of the Advisory Agreement, and participated in discussions with representatives of the Advisor during which the representatives answered the Independent Trustees’ questions and agreed to provide certain additional information for their consideration. 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 comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). In addition, at the April Meeting, the Board met with representatives of FUSE Research Network (“FUSE”), the independent third-party service provider engaged to prepare the FUSE reports, to review FUSE’s process and methodology for preparing the FUSE reports presented to the Board for its consideration, including in particular, the process for the selection of peer funds. The Independent Trustees carefully evaluated all of the information provided, 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 substantial commitment to the recruitment and retention of high quality personnel; (c) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts; (d) each Fund’s overall fees and operating expenses compared with those of similar funds, and the existence of or potential for the realization of economies of scale; (e) the level of the Advisor’s profitability from its Fund-related operations; (f) the Advisor’s compliance processes and systems; (g) the Advisor’s compliance policies and procedures; (h) the Advisor’s reputation, expertise and resources in the financial markets; (i) Fund performance compared with that of similar funds and/or appropriate benchmarks; (j) other benefits to the Advisor and/or its affiliates from their relationship to the Funds; and (k) the Advisor’s maintenance of operational resources and relationships with third-party service providers, necessary to manage the Funds in a professional manner consistent with the best interests of the Funds and their shareholders. In its deliberations, the Trustees did not identify any particular factor or factors as 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 Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees for each Fund are reasonable in light of, and not so disproportionately large as to bear no reasonable relationship to, the services that it provides to each Fund; and (c) agreed to approve the continuation of the Advisory Agreement for an additional one-year term 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), enterprise and Fund risk management infrastructure and processes, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity program. The Board reviewed the scope of services provided by the Advisor under the Advisory Agreement and noted that there would be no significant differences between the scope of services 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 continuation of the Advisory Agreement would ensure shareholders of the Funds continue to receive high quality services at a cost that is 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. Part of the Board’s review focused on the information presented in the FUSE reports, which provided comparisons of the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of

176 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(concluded)

funds selected by FUSE. In the FUSE 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 opinion that it found the peer groups compiled by FUSE to be appropriate, but acknowledged the existence of certain key features of the Funds that differentiate them from their peer funds (e.g., specific differences in principal investment strategies, index rebalance frequency, and, in certain cases, the Fund’s tradability feature) that should be taken into consideration. With respect to tradability, in particular, the Board considered that non-tradable peer funds incur lower expense ratios than the tradable Funds because the non-tradable peer funds necessarily experience less shareholder activity and lower transaction volumes than the 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. The Board also considered recent fee trends produced, at least in part, by industry-wide pressure on fees, as well as the Trust’s niche registered investment adviser clientele. 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 Advisory Agreement for the last calendar year, noting the asset-based breakpoints implemented by the Advisor in June 2018 for the advisory fee rates for each series of the Trust (with the exception of the Trust’s Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund (the “Alternative Funds”). In its review, the Board considered the direct revenue 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, which the Advisor confirmed was unchanged from the previous year. In its evaluation, the Board also considered the effect of the sale of Guggenheim’s ETF business in April 2018 on the Advisor’s and its affiliates’ profitability for the past year. The Board also considered the challenges currently affecting the sale of mutual funds, including the continued fall-out from the Department of Labor’s failed Fiduciary Rule, and alternative investment funds. 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 asset-based breakpoints in the fee schedule to the Advisory Agreement, effective June 1, 2018, and discussed certain of the Funds’ potential to benefit from the future realization of economies of scale. The Board noted the absence of breakpoints for the Trust’s Alternative Funds and the factors differentiating the Alternative Funds from the Trust’s other Funds. The Board agreed it would continue to monitor the performance of the Alternative Funds to determine whether breakpoints are warranted. The Board reviewed the terms of the breakpoints for the other Funds and noted that many of the Funds had not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board also noted that it intends to monitor the asset levels and thresholds at which the breakpoints are set to determine if they continue to be appropriate in the future.

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 derived by the Advisor and its affiliates as a result of their relationship with the Funds, including any intangible benefits to the Advisor. In particular, the Board considered the nature, extent, quality, and cost of certain distribution and shareholder services performed by the Advisor’s affiliate, Guggenheim Funds Distributors, LLC, under separate distribution agreements, Distribution Plans and Distribution and Shareholder Services Plans 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 affiliate’s 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, unanimously concluded that the terms of the Advisory Agreement were reasonable, and that approval of the continuation of the Advisory Agreement for an additional one-year term was in the best interests of each Fund and its shareholders.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 177

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 Trustees	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**	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee (November 2019-present).	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	158	Current: Trustee, Purpose Investments Funds (2013-Present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).
Angela Brock-Kyle (1959)	Trustee and Member of the Audit Committee (2016-present); and Member of the Governance and Nominating Committee (2017-present).	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	157	None.
Donald A. Chubb, Jr. (1946)	Trustee (November 2019-present).	Current: Retired. Former: Business broker and manager of commercial real estate, Griffith & Blair, Inc. (1997-2017).	157	Former: Midland Care, Inc. (2011-2016).
Jerry B. Farley (1946)	Trustee (November 2019-present).	Current: President, Washburn University (1997-present).	157	Current: CoreFirst Bank & Trust (2000-Present). Former: Westar Energy, Inc. (2004-2018).
Roman Friedrich III (1946)	Trustee (November 2019-present).	Current: Founder and Managing Partner, Roman Friedrich & Company (1998-present).	157	Former: Zincore Metals, Inc. (2009-January 2019).
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit Committee (2005-present); and Chairman and Member of the Governance and Nominating Committee (2017-present).	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	157	Current: US Global Investors (GROW) (1995-present); and Harvest Volatility Edge Trust (3) (2017-present).

178 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth of Trustees	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**	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Ronald A. Nyberg (1953)	Trustee (November 2019-present).	Current: Partner, Momkus LLC (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	158	Current: PPM Funds (9) (2018 - present); Edward-Elmhurst Healthcare System (2012-present); Western Asset Inflation-Linked Opportunities & Income Fund (2004-present); Western Asset Inflation-Linked Income Fund (2003-present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).
Sandra G. Sponem (1958)	Trustee and Member of the Audit Committee (2016-present); Member of the Governance and Nominating Committee (2017-present); Chairwoman (January 2019-present); and Chairwoman of Audit Committee (November 2019-present)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-2017).	157	Current: SPDR Series Trust (78) (2018-present); SPDR Index Shares Funds (31) (2018-present); SSGA Active Trust (12) (2018-present); and SSGA Master Trust (1) (2018-present).
Ronald E. Toupin, Jr. (1958)	Trustee (November 2019-present).	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	157	Current: Western Asset Inflation-Linked Opportunities & Income Fund (2004-present); Western Asset Inflation-Linked Income Fund (2003-present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 179

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

Name, Address* and Year of Birth of Trustees	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**	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer (November 2019-present).	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer (2017- 2018); President, certain other funds in the Fund Complex (2017-November 2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	157	None.

180 | 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
Brian E. Binder (1972)	President and Chief Executive Officer (November 2019-present)	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President and Chief Executive Officer, Guggenheim Funds Investment Advisors, LLC and Security Investors, LLC (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary (2017-present)	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).
Michael P. Megaris (1984)	Assistant Secretary (2018-present)	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present)	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer (2017-present)	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Director, Guggenheim Investments (2013-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 181

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
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).
William Rehder (1967)	Assistant Vice President (2018-present)	Current: Managing Director, Guggenheim Investments (2002-present).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: Chief Financial Officer, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and Chief Compliance Officer, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer (2017-present)	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014-2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	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.
***	Certain 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.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.
*****	Each Trustee serves an indefinite term, until his or her successor is elected and qualified.

182 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

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

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

Our Commitment to You

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

The Information We Collect About You

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

How We Handle Your Personal Information

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

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

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

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 183

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

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

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

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

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

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

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

Opt-Out Provisions and Your Data Choices

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

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

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

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

184 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

How We Protect Privacy Online

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

How We Safeguard Your Personal Information and Data Retention

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

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

International Visitors

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

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

We’ll Keep You Informed

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 185

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

9.30.2019

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

Beginning on January 1, 2021, paper copies of the Funds’ annual and semi-annual shareholder reports may no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a fund electronically by calling 800.820.0888, going to GuggenheimInvestments.com/myaccount, or by contacting your financial intermediary.

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

GuggenheimInvestments.com RBENF2-SEMI-0919x0320

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
S&P 500® PURE GROWTH FUND	10
S&P 500® PURE VALUE FUND	18
S&P MIDCAP 400® PURE GROWTH FUND	25
S&P MIDCAP 400® PURE VALUE FUND	32
S&P SMALLCAP 600® PURE GROWTH FUND	39
S&P SMALLCAP 600® PURE VALUE FUND	47
EUROPE 1.25x STRATEGY FUND	55
JAPAN 2x STRATEGY FUND	65
STRENGTHENING DOLLAR 2x STRATEGY FUND	73
WEAKENING DOLLAR 2x STRATEGY FUND	81
NOTES TO FINANCIAL STATEMENTS	89
OTHER INFORMATION	103
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	106
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	111

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2019

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for a selection of our funds (the “Fund” or “Funds”). This report covers performance for the six-month period ended September 30, 2019.

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,

Security Investors, LLC
October 31, 2019

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

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

September 30, 2019

Inverse and leveraged Funds are not suitable for all investors. ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments. ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● Inverse Funds involve certain risks, which include increased volatility due to the Funds’ possible use of short sales of securities and derivatives, such as options and futures. ● The Funds’ use of derivatives, such as futures, options, and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. ● Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a Fund from correlating with the monthly, quarterly, annual, or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a Fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged and inverse Funds’ holdings consistent with their strategies, as frequently as daily. ● For more on these and other risks, please read the prospectus.

Pure Style Funds may not be suitable for all investors. ● The Funds are subject to the risk that large, medium and small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole ● Value stocks are subject to the risk that the intrinsic value of the stock may never be realized by the market or that the price goes down. Growth stocks typically invest a high portion of their earnings back into their business and may lack the dividend yield that could cushion their decline in a market downturn. Growth stocks may be more volatile than other stocks because they are more sensitive to investor perceptions regarding the growth potential of the issuing company. ● The Funds are subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Funds’ inability to buy or sell securities or other financial instruments on that day. In certain circumstances, it may be difficult for the Funds to purchase and sell particular investments within a reasonable time at a fair price. ● Unlike many investment companies, the Funds are not actively “managed.” This means that based on market and economic conditions, the Funds’ performance could be lower than other types of funds that may actively shift their portfolio assets to take advantage of market opportunities. ● The Funds are subject to active trading and tracking error risks, which may increase volatility, impact the Funds’ ability to achieve their investment objective and may decrease the Funds’ performance. ● These Funds are considered non-diversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. ● Securities are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. ● Please read the prospectus for more detailed information regarding these and other risks.

The Strengthening Dollar 2x Strategy Fund is subject to a number of risks and may not be suitable for all investors. ● The Fund’s use of derivatives such as futures and swap agreements may expose the fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● The Fund’s exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. These risks may cause the Fund to experience higher losses and/or volatility than a Fund that does not invest in derivatives, use leverage or have exposure to foreign currencies. ● Also, the Fund is subject to active trading and tracking error risks that may increase volatility, decrease performance and impact the Fund’s ability to achieve its investment objective. This fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. ● For more on these and other risks, please read the prospectus

The Weakening Dollar 2x Strategy Fund is subject to a number of risks and may not be suitable for all investors. ● The Fund’s use of derivatives such as futures and swap agreements may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ● The Fund’s indirect exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. These risks may cause the Fund to experience higher losses and/or volatility than a fund that does not invest in derivatives, use leverage or have exposure to foreign currencies. ● Also, the Fund is subject to active trading and tracking error risks that may increase volatility, decrease performance and impact the Fund’s ability to achieve its investment objective. This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. ● For more on these and other risks, please read the prospectus.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2019

Economic data has been mixed over the past few months. On the positive side, we saw a pickup in the housing market as measured by housing starts and home sales, which could be a delayed response to lower mortgage rates. Industrial production had the strongest month-over-month gain in a year, partially boosted by an increase in oil production in Hurricane Barry’s wake. The unemployment rate fell to a 50-year low of 3.5% in September 2019, despite a continued moderation in payroll gains.

On the negative side, the Institute for Supply Management (“ISM”) Manufacturing Index plunged to the weakest reading since June 2009. The ISM Non-Manufacturing Index also came in well below expectations, the lowest since August 2016. Within both the manufacturing and non-manufacturing ISM indexes, analysts look at the employment component of the survey for an early read on other labor market indicators. Here we find more cause for concern: The non-manufacturing survey’s employment component is now barely above 50 while the manufacturing employment sub-index stands at 46.3, well into contraction territory. Combined, the outlook for output and hiring has dimmed, signaling trouble ahead for consumers.

Retail sales have been steady, but Commerce Department data showed that total consumer spending on goods and services increased only 0.1% month-over-month in August 2019, the smallest gain in six months. It is hard to identify the primary reason why consumers may already be turning more conservative on spending. Income growth looks steady, the equity market is higher year-to-date, and rates are lower, all of which should be boosting consumer confidence. Sentiment surveys, however, show that fewer consumers believe now is a good time to buy homes, vehicles, and household durables, and headline consumer confidence measures have ticked down. We believe trade policy and political concerns are weighing on sentiment, and these headwinds are set to ramp up further. Additional U.S. tariffs on China are due to take effect on December 15, 2019 and the U.S. House of Representatives is pressing forward with its impeachment inquiry into President Trump.

Guggenheim’s dashboard of U.S. recession indicators continues to point to a recession beginning as early as the first half of 2020, and we think the economic data is corroborating this view. Two of the more notable indicators pointing to high recession risk are the three-month/10-year U.S. Treasury yield curve, which has been inverted for 16 consecutive weeks through period end, and the Leading Economic Indicators Index which has slowed from a year-over-year growth rate of 6.6% in September 2018 to 1.1% as of August 2019. The indicators Guggenheim tracks as part of our recession probability model indicate a nearly 50% chance that a recession will come before mid-2020, and a 70% chance that it will arrive by mid 2021.

Over the period, the U.S. Treasury curve continued its overall flattening trend, as the difference between the two-year U.S. Treasury and 10-year U.S. Treasury narrowed to 5 basis points. Equity markets remained volatile, buoyed by a 25 basis point cut in July and September 2019 by the U.S. Federal Reserve (the “Fed”) and relatively strong U.S. economic data, but weighed down by trade war uncertainty and fears of a global slowdown.

With downside risks growing, markets have become more sensitive to the Fed’s communications about the future stance of monetary policy. Despite the two rate cuts, Fed policymakers are deeply divided. It is still unclear whether the Fed will deliver the aggressive and preemptive policy action that would prolong the current expansion.

As it relates to risk-taking, we are not confident that the Fed would succeed in easing credit conditions if conditions were to tighten materially. The Fed may act too late, or its actions may have little impact given that low rates this year have largely failed to stimulate growth. With credit spreads still relatively tight on a historical basis, we believe it is prudent to remain up in quality as we await better opportunities to deploy capital in riskier credit sectors in the coming downturn.

For the six-month period ended September 30, 2019, the Standard & Poor’s 500^® (“S&P 500”) Index^* returned 6.08%. The MSCI Europe-Australasia-Far East (“EAFE”) Index^* returned 2.93%. The return of the MSCI Emerging Markets Index^* was -3.40%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index^* posted a 5.42% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index^* returned 3.87%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index^* was 1.20% 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.

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2019

^*Index Definitions:

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

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

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

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

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

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

Nikkei-225 Stock Average Index is a price-weighted index comprised of Japan’s top 225 blue-chip companies on the Tokyo Stock Exchange.

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

S&P 500^® Pure Growth Index is narrow in focus, containing only those S&P 500 Index companies with strong growth characteristics as selected by S&P. The S&P 500 Index is a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues).

S&P 500^® Pure Value Index is narrow in focus, containing only those S&P 500 Index companies with strong value characteristics as selected by S&P. The S&P 500 Index is a capitalization-weighted index covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE Euronext issues).

S&P MidCap 400^® Pure Growth Index is narrow in focus, containing only those S&P MidCap 400 Index companies with strong growth characteristics as selected by S&P. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.

S&P MidCap 400^® Pure Value Index is narrow in focus, containing only those S&P MidCap 400 Index companies with strong value characteristics as selected by S&P. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market.

S&P SmallCap 600^® Pure Growth Index is narrow in focus, containing only those S&P SmallCap 600 Index companies with strong growth characteristics as selected by S&P. The S&P SmallCap 600 Index measures the performance of the small-capitalization sector of the U.S. equity market.

S&P SmallCap 600^® Pure Value Index is narrow in focus, containing only those S&P SmallCap 600 Index companies with strong value characteristics as selected by S&P. The S&P SmallCap 600 Index measures the performance of the small-capitalization sector of the U.S. equity market.

STOXX^® Europe 50 Index provides a blue-chip representation of super-sector leaders in Europe. The index covers 50 stocks from developed European countries such as Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

USD or U.S. Dollar Index^® (USDX) is an index that determines the relative value of the United States dollar to a basket of foreign currencies. This formulated “basket” of currencies comprises the weighting of six other currencies as follows: euro (EUR), 57.6% + Japanese yen (JPY), 13.6% + pound sterling (GBP), 11.9% + Canadian dollar (CAD), 9.1% + Swedish krona (SEK), 4.2% + Swiss franc (CHF) 3.6%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

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

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

An Example of Compounding

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

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

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

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

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

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

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

6 | THE RYDEX FUNDS 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, 2019 and ending September 30, 2019.

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 | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Table 1. Based on actual Fund return3
S&P 500® Pure Growth Fund
A-Class	1.62%	2.08%	$ 1,000.00	$ 1,020.80	$ 8.21
C-Class	2.37%	1.70%	1,000.00	1,017.00	11.98
H-Class	1.62%	2.08%	1,000.00	1,020.80	8.21
S&P 500® Pure Value Fund
A-Class	1.62%	3.51%	1,000.00	1,035.10	8.26
C-Class	2.37%	3.11%	1,000.00	1,031.10	12.07
H-Class	1.62%	3.51%	1,000.00	1,035.10	8.26
S&P MidCap 400® Pure Growth Fund
A-Class	1.62%	(6.63%)	1,000.00	933.70	7.85
C-Class	2.37%	(6.98%)	1,000.00	930.20	11.47
H-Class	1.62%	(6.62%)	1,000.00	933.80	7.85
S&P MidCap 400® Pure Value Fund
A-Class	1.62%	(3.49%)	1,000.00	965.10	7.98
C-Class	2.37%	(3.84%)	1,000.00	961.60	11.65
H-Class	1.62%	(3.47%)	1,000.00	965.30	7.98
S&P SmallCap 600® Pure Growth Fund
A-Class	1.62%	(6.12%)	1,000.00	938.80	7.87
C-Class	2.37%	(6.48%)	1,000.00	935.20	11.50
H-Class	1.61%	(6.12%)	1,000.00	938.80	7.83
S&P SmallCap 600® Pure Value Fund
A-Class	1.62%	(2.75%)	1,000.00	972.50	8.01
C-Class	2.37%	(3.12%)	1,000.00	968.80	11.70
H-Class	1.62%	(2.75%)	1,000.00	972.50	8.01
Europe 1.25x Strategy Fund
A-Class	1.74%	3.15%	1,000.00	1,031.50	8.86
C-Class	2.49%	2.73%	1,000.00	1,027.30	12.65
H-Class	1.77%	3.12%	1,000.00	1,031.20	9.01
Japan 2x Strategy Fund
A-Class	1.55%	9.12%	1,000.00	1,091.20	8.13
C-Class	2.30%	8.71%	1,000.00	1,087.10	12.03
H-Class	1.56%	9.10%	1,000.00	1,091.00	8.18
Strengthening Dollar 2x Strategy Fund
A-Class	2.01%	6.71%	1,000.00	1,067.10	10.42
C-Class	2.75%	6.33%	1,000.00	1,063.30	14.22
H-Class	2.01%	6.74%	1,000.00	1,067.40	10.42
Weakening Dollar 2x Strategy Fund
A-Class	2.03%	(6.35%)	1,000.00	936.50	9.85
C-Class	2.78%	(6.73%)	1,000.00	932.70	13.47
H-Class	2.03%	(6.36%)	1,000.00	936.40	9.85

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
S&P 500® Pure Growth 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
S&P 500® Pure Value 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
S&P MidCap 400® Pure Growth 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
S&P MidCap 400® Pure Value 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
S&P SmallCap 600® Pure Growth 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	1.61%	5.00%	1,000.00	1,017.00	8.14
S&P SmallCap 600® Pure Value 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
Europe 1.25x 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	1.77%	5.00%	1,000.00	1,016.19	8.95
Japan 2x Strategy 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	1.56%	5.00%	1,000.00	1,017.25	7. 89
Strengthening Dollar 2x Strategy Fund
A-Class	2.01%	5.00%	1,000.00	1,014.99	10.15
C-Class	2.75%	5.00%	1,000.00	1,011.28	13.87
H-Class	2.01%	5.00%	1,000.00	1,014.99	10.15
Weakening Dollar 2x Strategy Fund
A-Class	2.03%	5.00%	1,000.00	1,014.89	10.25
C-Class	2.78%	5.00%	1,000.00	1,011.13	14.02
H-Class	2.03%	5.00%	1,000.00	1,014.89	10.25

1	Annualized and excludes expenses of the underlying funds in which the Funds invest, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2019 to September 30, 2019.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
Keysight Technologies, Inc.	2.6%
Thermo Fisher Scientific, Inc.	1.8%
CSX Corp.	1.8%
salesforce.com, Inc.	1.7%
Autodesk, Inc.	1.6%
Ulta Beauty, Inc.	1.6%
Devon Energy Corp.	1.6%
Waste Management, Inc.	1.5%
Vertex Pharmaceuticals, Inc.	1.5%
TransDigm Group, Inc.	1.5%
Top Ten Total	17.2%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	2.08%	(1.87%)	8.18%	13.36%
A-Class Shares with sales charge‡	(2.76%)	(6.53%)	7.13%	12.81%
C-Class Shares	1.70%	(2.60%)	7.37%	12.51%
C-Class Shares with CDSC§	0.70%	(3.51%)	7.37%	12.51%
H-Class Shares	2.08%	(1.88%)	8.18%	13.36%
S&P 500 Pure Growth Index	2.92%	(0.34%)	9.97%	15.34%

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

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
S&P 500® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 100.1%
Consumer, Non-cyclical - 28.8%
Thermo Fisher Scientific, Inc.		4,761	$	1,386,736
Vertex Pharmaceuticals, Inc.*		6,627		1,122,747
Cintas Corp.		3,846		1,031,113
Church & Dwight Company, Inc.		13,287		999,714
Edwards Lifesciences Corp.*		4,265		937,916
Kellogg Co.		14,160		911,196
Constellation Brands, Inc. — Class A		4,034		836,167
DaVita, Inc.*		14,412		822,493
WellCare Health Plans, Inc.*		3,040		787,877
IHS Markit Ltd.*		11,758		786,375
Hormel Foods Corp.		17,427		762,082
McCormick & Company, Inc.		4,823		753,835
Boston Scientific Corp.*		17,979		731,566
Zimmer Biomet Holdings, Inc.		5,183		711,470
Monster Beverage Corp.*		11,811		685,747
Abbott Laboratories		8,056		674,046
Global Payments, Inc.		4,212		669,708
Gartner, Inc.*		4,648		664,617
Eli Lilly & Co.		5,828		651,745
PayPal Holdings, Inc.*		6,179		640,083
Intuitive Surgical, Inc.*		1,157		624,699
Lamb Weston Holdings, Inc.		8,483		616,884
Humana, Inc.		2,118		541,509
Medtronic plc		4,364		474,018
HCA Healthcare, Inc.		3,816		459,522
S&P Global, Inc.		1,835		449,538
Merck & Company, Inc.		5,245		441,524
Automatic Data Processing, Inc.		2,597		419,208
Pfizer, Inc.		11,301		406,045
Clorox Co.		2,536		385,142
Illumina, Inc.*		1,051		319,735
Total Consumer, Non-cyclical				21,705,057
Technology - 15.5%
salesforce.com, Inc.*		8,442		1,253,130
Autodesk, Inc.*		8,419		1,243,486
Advanced Micro Devices, Inc.*		35,591		1,031,783
Take-Two Interactive Software, Inc.*		7,806		978,404
Intuit, Inc.		3,387		900,739
ANSYS, Inc.*		3,520		779,187
Adobe, Inc.*		2,450		676,813
Fortinet, Inc.*		8,688		666,891
Fidelity National Information Services, Inc.		4,911		651,984
Akamai Technologies, Inc.*		6,991		638,838
Cerner Corp.		8,987		612,644
Leidos Holdings, Inc.		6,490		557,361
Xilinx, Inc.		5,574		534,547
Broadcom, Inc.		1,720		474,840
Broadridge Financial Solutions, Inc.		3,633		452,054
NetApp, Inc.		5,183		272,160
Total Technology				11,724,861
Industrial - 12.2%
Keysight Technologies, Inc.*		19,887		1,934,011
CSX Corp.		19,348		1,340,236
Waste Management, Inc.		9,890		1,137,350
TransDigm Group, Inc.		2,114		1,100,696
Ingersoll-Rand plc		5,293		652,151
Union Pacific Corp.		3,067		496,792
Xylem, Inc.		6,106		486,160
Expeditors International of Washington, Inc.		6,496		482,588
Roper Technologies, Inc.		1,155		411,873
AMETEK, Inc.		4,382		402,355
Boeing Co.		1,050		399,494
IDEX Corp.		2,270		372,007
Total Industrial				9,215,713
Consumer, Cyclical - 12.1%
Ulta Beauty, Inc.*		4,957		1,242,472
O’Reilly Automotive, Inc.*		2,561		1,020,584
WW Grainger, Inc.		3,267		970,789
Dollar General Corp.		5,252		834,753
Chipotle Mexican Grill, Inc. — Class A*		895		752,221
Yum! Brands, Inc.		6,540		741,832
Tractor Supply Co.		7,493		677,667
VF Corp.		7,268		646,779
TJX Companies, Inc.		11,236		626,295
Fastenal Co.		18,284		597,338
Hilton Worldwide Holdings, Inc.		5,797		539,759
AutoZone, Inc.*		417		452,286
Total Consumer, Cyclical				9,102,775
Financial - 9.0%
Intercontinental Exchange, Inc.		10,722		989,319
Welltower, Inc. REIT		10,702		970,136
SVB Financial Group*		4,437		927,111
U.S. Bancorp		13,077		723,681
Cboe Global Markets, Inc.		5,688		653,608
Apartment Investment & Management Co. — Class A REIT		11,961		623,647
Mastercard, Inc. — Class A		2,267		615,649
First Republic Bank		5,151		498,102
HCP, Inc. REIT		12,921		460,375
Alliance Data Systems Corp.		2,864		366,965
Total Financial				6,828,593
Communications - 8.7%
Netflix, Inc.*		4,068		1,088,678
Motorola Solutions, Inc.		5,978		1,018,711
Verizon Communications, Inc.		12,093		729,933
Twitter, Inc.*		17,210		709,052
Cisco Systems, Inc.		12,177		601,666
Facebook, Inc. — Class A*		3,163		563,267
Amazon.com, Inc.*		270		468,696
VeriSign, Inc.*		2,455		463,086
Alphabet, Inc. — Class C*		371		452,249

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
S&P 500® PURE GROWTH FUND

	Shares		Value
Alphabet, Inc. — Class A*		363	$	443,274
Total Communications				6,538,612
Energy - 7.6%
Devon Energy Corp.		50,960		1,226,097
ConocoPhillips		17,403		991,623
Diamondback Energy, Inc.		10,447		939,290
HollyFrontier Corp.		16,867		904,746
Apache Corp.		23,377		598,451
Marathon Oil Corp.		48,315		592,825
Occidental Petroleum Corp.		10,610		471,827
Total Energy				5,724,859
Utilities - 4.0%
Ameren Corp.		11,041		883,832
NRG Energy, Inc.		19,654		778,299
Pinnacle West Capital Corp.		7,029		682,305
NextEra Energy, Inc.		2,775		646,547
Total Utilities				2,990,983
Basic Materials - 2.2%
Air Products & Chemicals, Inc.		4,056		899,864
Ecolab, Inc.		3,736		739,878
Total Basic Materials				1,639,742
Total Common Stocks
(Cost $65,983,465)				75,471,195

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.5%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	216,840	$	216,840
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		69,728		69,728
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		62,756		62,756
Total Repurchase Agreements
(Cost $349,324)				349,324
Total Investments - 100.6%
(Cost $66,332,789)			$	75,820,519
Other Assets & Liabilities, net - (0.6)%				(420,104	)
Total Net Assets - 100.0%			$	75,400,415

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 6.
	plc — Public Limited Company
	REIT — Real Estate Investment Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
S&P 500® PURE GROWTH FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	75,471,195	$	—	$	—	$	75,471,195
Repurchase Agreements		—		349,324		—		349,324
Total Assets	$	75,471,195	$	349,324	$	—	$	75,820,519

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

S&P 500^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value (cost $65,983,465)	$	75,471,195
Repurchase agreements, at value (cost $349,324)		349,324
Cash		3,579
Receivables:
Dividends		44,633
Fund shares sold		10,873
Interest		22
Securities lending income		15
Total assets		75,879,641
Liabilities:
Payable for:
Fund shares redeemed		289,275
Management fees		47,472
Distribution and service fees		21,338
Professional fees		18,162
Transfer agent and administrative fees		15,824
Portfolio accounting fees		6,330
Trustees’ fees*		1,765
Miscellaneous		79,060
Total liabilities		479,226
Commitments and contingent liabilities (Note 11)		—
Net assets	$	75,400,415
Net assets consist of:
Paid in capital	$	52,092,396
Total distributable earnings (loss)		23,308,019
Net assets	$	75,400,415
A-Class:
Net assets	$	12,165,421
Capital shares outstanding		180,959
Net asset value per share	$	67.23
Maximum offering price per share (Net asset value divided by 95.25%)	$	70.58
C-Class:
Net assets	$	9,195,503
Capital shares outstanding		156,849
Net asset value per share	$	58.63
H-Class:
Net assets	$	54,039,491
Capital shares outstanding		804,083
Net asset value per share	$	67.21

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	591,202
Interest		5,967
Income from securities lending, net		30
Total investment income		597,199
Expenses:
Management fees		362,391
Distribution and service fees:
A-Class		18,023
C-Class		51,853
H-Class		89,810
Transfer agent and administrative fees		120,797
Portfolio accounting fees		48,318
Registration fees		39,923
Trustees’ fees*		11,012
Custodian fees		6,807
Line of credit fees		103
Miscellaneous		70,889
Total expenses		819,926
Net investment loss		(222,727	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		11,220,248
Net realized gain		11,220,248
Net change in unrealized appreciation (depreciation) on:
Investments		(8,175,900	)
Net change in unrealized appreciation (depreciation)		(8,175,900	)
Net realized and unrealized gain		3,044,348
Net increase in net assets resulting from operations	$	2,821,621

^* 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.

S&P 500^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(222,727	)	$	(1,068,747	)
Net realized gain on investments		11,220,248			10,030,108
Net change in unrealized appreciation (depreciation) on investments		(8,175,900	)		(7,422,006	)
Net increase in net assets resulting from operations		2,821,621			1,539,355
Distributions to shareholders:
A-Class		—			(870,081	)
C-Class		—			(600,984	)
H-Class		—			(4,191,710	)
Total distributions to shareholders		—			(5,662,775	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,042,948			10,908,532
C-Class		1,778,046			8,317,472
H-Class		126,820,270			199,338,871
Distributions reinvested
A-Class		—			864,007
C-Class		—			594,072
H-Class		—			4,160,522
Cost of shares redeemed
A-Class		(5,751,362	)		(13,543,315	)
C-Class		(3,094,050	)		(11,926,777	)
H-Class		(157,572,749	)		(226,573,703	)
Net decrease from capital share transactions		(35,776,897	)		(27,860,319	)
Net decrease in net assets		(32,955,276	)		(31,983,739	)
Net assets:
Beginning of period		108,355,691			140,339,430
End of period	$	75,400,415		$	108,355,691
Capital share activity:
Shares sold
A-Class		30,464			167,257
C-Class		30,151			137,043
H-Class		1,891,864			3,043,070
Shares issued from reinvestment of distributions
A-Class		—			14,286
C-Class		—			11,196
H-Class		—			68,803
Shares redeemed
A-Class		(84,190	)		(206,325	)
C-Class		(52,467	)		(196,508	)
H-Class		(2,341,910	)		(3,506,875	)
Net decrease in shares		(526,088	)		(468,053	)

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	65.86		$	66.50		$	57.84		$	51.74		$	55.85		$	50.81
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.50	)		(.36	)		(.44	)		(.22	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		1.49			3.42			12.57			6.56			(2.47	)		6.86
Total from investment operations		1.37			2.92			12.21			6.12			(2.69	)		6.53
Less distributions from:
Net realized gains		—			(3.56	)		(3.55	)		(.02	)		(1.42	)		(1.49	)
Total distributions		—			(3.56	)		(3.55	)		(.02	)		(1.42	)		(1.49	)
Net asset value, end of period	$	67.23		$	65.86		$	66.50		$	57.84		$	51.74		$	55.85
Total Returnc		2.08	%		4.88	%		21.39	%		11.84	%		(4.90	%)		12.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,165		$	15,456		$	17,254		$	15,575		$	24,037		$	25,768
Ratios to average net assets:
Net investment income (loss)		(0.37	%)		(0.75	%)		(0.56	%)		(0.82	%)		(0.41	%)		(0.62	%)
Total expenses		1.62	%		1.61	%		1.53	%		1.53	%		1.50	%		1.50	%
Portfolio turnover rate		106	%		177	%		215	%		184	%		290	%		274	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	57.65		$	59.10		$	52.13		$	46.99		$	51.23		$	47.07
Income (loss) from investment operations:
Net investment income (loss)b		(.32	)		(.90	)		(.75	)		(.77	)		(.57	)		(.67	)
Net gain (loss) on investments (realized and unrealized)		1.30			3.01			11.27			5.93			(2.25	)		6.32
Total from investment operations		.98			2.11			10.52			5.16			(2.82	)		5.65
Less distributions from:
Net realized gains		—			(3.56	)		(3.55	)		(.02	)		(1.42	)		(1.49	)
Total distributions		—			(3.56	)		(3.55	)		(.02	)		(1.42	)		(1.49	)
Net asset value, end of period	$	58.63		$	57.65		$	59.10		$	52.13		$	46.99		$	51.23
Total Returnc		1.70	%		4.09	%		20.50	%		10.99	%		(5.61	%)		12.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,196		$	10,329		$	13,442		$	10,951		$	17,546		$	22,701
Ratios to average net assets:
Net investment income (loss)		(1.10	%)		(1.52	%)		(1.32	%)		(1.57	%)		(1.16	%)		(1.37	%)
Total expenses		2.37	%		2.36	%		2.28	%		2.27	%		2.25	%		2.25	%
Portfolio turnover rate		106	%		177	%		215	%		184	%		290	%		274	%

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	65.84		$	66.49		$	57.83		$	51.73		$	55.84		$	50.80
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.53	)		(.38	)		(.44	)		(.18	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		1.50			3.44			12.59			6.56			(2.51	)		6.87
Total from investment operations		1.37			2.91			12.21			6.12			(2.69	)		6.53
Less distributions from:
Net realized gains		—			(3.56	)		(3.55	)		(.02	)		(1.42	)		(1.49	)
Total distributions		—			(3.56	)		(3.55	)		(.02	)		(1.42	)		(1.49	)
Net asset value, end of period	$	67.21		$	65.84		$	66.49		$	57.83		$	51.73		$	55.84
Total Return		2.08	%		4.86	%		21.40	%		11.84	%		(4.91	%)		12.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	54,039		$	82,570		$	109,644		$	78,673		$	113,223		$	104,628
Ratios to average net assets:
Net investment income (loss)		(0.39	%)		(0.79	%)		(0.59	%)		(0.81	%)		(0.35	%)		(0.65	%)
Total expenses		1.62	%		1.61	%		1.53	%		1.52	%		1.51	%		1.50	%
Portfolio turnover rate		106	%		177	%		215	%		184	%		290	%		274	%

a	Unaudited figures for the period ended September 30, 2019. 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 | 17

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
Ford Motor Co.	2.2%
MetLife, Inc.	2.0%
Valero Energy Corp.	2.0%
Baker Hughes a GE Co.	1.9%
Lennar Corp. — Class A	1.9%
Prudential Financial, Inc.	1.8%
Tyson Foods, Inc. — Class A	1.7%
Coty, Inc. — Class A	1.7%
Assurant, Inc.	1.6%
Western Digital Corp.	1.6%
Top Ten Total	18.4%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	3.51%	(4.26%)	5.00%	11.02%
A-Class Shares with sales charge‡	(1.40%)	(8.80%)	3.98%	10.48%
C-Class Shares	3.11%	(4.99%)	4.21%	10.20%
C-Class Shares with CDSC§	2.11%	(5.85%)	4.21%	10.20%
H-Class Shares	3.51%	(4.25%)	5.00%	11.03%
S&P 500 Pure Value Index	4.36%	(2.75%)	6.71%	13.37%

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

18 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
S&P 500® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Financial - 33.8%
MetLife, Inc.		20,375	$	960,885
Prudential Financial, Inc.		9,993		898,870
Assurant, Inc.		6,344		798,202
Lincoln National Corp.		12,522		755,327
Loews Corp.		14,190		730,501
Unum Group		23,069		685,611
Principal Financial Group, Inc.		11,309		646,196
Hartford Financial Services Group, Inc.		10,446		633,132
Allstate Corp.		5,671		616,324
Everest Re Group Ltd.		2,283		607,484
Citizens Financial Group, Inc.		16,319		577,203
American International Group, Inc.		9,842		548,199
Capital One Financial Corp.		5,990		544,970
Invesco Ltd.		31,210		528,697
Goldman Sachs Group, Inc.		2,510		520,147
Morgan Stanley		10,233		436,642
Chubb Ltd.		2,670		431,045
Synchrony Financial		11,894		405,466
Citigroup, Inc.		5,679		392,305
Aflac, Inc.		6,985		365,455
People’s United Financial, Inc.		23,296		364,233
Travelers Companies, Inc.		2,421		359,979
Bank of America Corp.		12,020		350,623
SunTrust Banks, Inc.		4,919		338,427
Fifth Third Bancorp		12,159		332,913
Regions Financial Corp.		19,145		302,874
State Street Corp.		4,476		264,935
Kimco Realty Corp. REIT		12,447		259,894
KeyCorp		14,140		252,258
Zions Bancorp North America		5,321		236,891
PNC Financial Services Group, Inc.		1,682		235,749
Bank of New York Mellon Corp.		5,133		232,063
Wells Fargo & Co.		4,361		219,969
Raymond James Financial, Inc.		2,586		213,242
BB&T Corp.		3,915		208,944
Huntington Bancshares, Inc.		13,465		192,146
Affiliated Managers Group, Inc.		2,139		178,286
Total Financial				16,626,087
Consumer, Cyclical - 20.1%
Ford Motor Co.		118,994		1,089,985
Lennar Corp. — Class A		16,747		935,320
General Motors Co.		19,985		749,038
PulteGroup, Inc.		16,940		619,157
DR Horton, Inc.		11,381		599,893
Target Corp.		5,497		587,684
Mohawk Industries, Inc.*		3,840		476,429
Best Buy Company, Inc.		6,115		421,874
LKQ Corp.*		12,972		407,969
PVH Corp.		4,037		356,185
Kohl’s Corp.		6,967		345,981
Whirlpool Corp.		2,139		338,732
BorgWarner, Inc.		8,494		311,560
Dollar Tree, Inc.*		2,605		297,387
PACCAR, Inc.		4,220		295,442
United Airlines Holdings, Inc.*		3,230		285,564
Walmart, Inc.		2,183		259,079
American Airlines Group, Inc.		8,304		223,959
MGM Resorts International		7,738		214,497
Alaska Air Group, Inc.		3,188		206,933
Gap, Inc.		11,072		192,210
Norwegian Cruise Line Holdings Ltd.*		3,420		177,053
Walgreens Boots Alliance, Inc.		3,094		171,129
Delta Air Lines, Inc.		2,967		170,899
Carnival Corp.		2,890		126,322
Total Consumer, Cyclical				9,860,281
Consumer, Non-cyclical - 16.4%
Tyson Foods, Inc. — Class A		9,887		851,666
Coty, Inc. — Class A		79,430		834,809
Quanta Services, Inc.		18,983		717,558
Archer-Daniels-Midland Co.		16,881		693,303
McKesson Corp.		4,278		584,632
Kroger Co.		21,287		548,779
AmerisourceBergen Corp. — Class A		6,095		501,801
Cardinal Health, Inc.		10,595		499,978
Allergan plc		2,930		493,090
Molson Coors Brewing Co. — Class B		8,270		475,525
CVS Health Corp.		6,369		401,693
JM Smucker Co.		3,039		334,351
Kraft Heinz Co.		9,992		279,126
Laboratory Corporation of America Holdings*		1,539		258,552
Centene Corp.*		5,070		219,328
Anthem, Inc.		760		182,476
Mylan N.V.*		7,203		142,475
Corteva, Inc.		1,359		38,052
Total Consumer, Non-cyclical				8,057,194
Energy - 11.0%
Valero Energy Corp.		11,245		958,524
Baker Hughes a GE Co.		40,942		949,855
Phillips 66		7,285		745,984
TechnipFMC plc		29,001		700,084
Marathon Petroleum Corp.		10,761		653,731
Noble Energy, Inc.		17,250		387,435
National Oilwell Varco, Inc.		15,240		323,088
Kinder Morgan, Inc.		13,732		283,016
Chevron Corp.		2,254		267,324
Helmerich & Payne, Inc.		3,186		127,663
Total Energy				5,396,704
Technology - 5.6%
Western Digital Corp.		13,186		786,413
Hewlett Packard Enterprise Co.		44,166		669,998
Xerox Holdings Corp.		16,990		508,171
Micron Technology, Inc.*		9,638		412,988
DXC Technology Co.		7,942		234,289
HP, Inc.		7,390		139,819
Total Technology				2,751,678

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
S&P 500® PURE VALUE FUND

	Shares		Value
Communications - 4.1%
AT&T, Inc.		14,267	$	539,863
CenturyLink, Inc.		40,216		501,896
DISH Network Corp. — Class A*		8,966		305,472
Viacom, Inc. — Class B		12,072		290,090
News Corp. — Class A		18,939		263,631
News Corp. — Class B		6,068		86,742
Total Communications				1,987,694
Industrial - 4.0%
Jacobs Engineering Group, Inc.		6,565		600,697
Westrock Co.		14,818		540,116
Johnson Controls International plc		10,003		439,032
Arconic, Inc.		9,082		236,132
Textron, Inc.		3,309		162,009
Total Industrial				1,977,986
Utilities - 2.8%
Exelon Corp.		6,944		335,465
Edison International		3,560		268,495
Consolidated Edison, Inc.		2,320		219,171
CenterPoint Energy, Inc.		6,435		194,208
Evergy, Inc.		2,727		181,509
Duke Energy Corp.		1,884		180,600
Total Utilities				1,379,448
Basic Materials - 1.9%
Nucor Corp.		6,329		322,209
International Paper Co.		5,991		250,544
LyondellBasell Industries N.V. — Class A		2,230		199,518
DuPont de Nemours, Inc.		1,359		96,910
Dow, Inc.		1,357		64,661
Total Basic Materials				933,842
Total Common Stocks
(Cost $44,002,907)				48,970,914

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 0.5%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	155,936	$	155,936
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		50,144		50,144
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		45,129		45,129
Total Repurchase Agreements
(Cost $251,209)				251,209
Total Investments - 100.2%
(Cost $44,254,116)			$	49,222,123
Other Assets & Liabilities, net - (0.2)%				(77,410	)
Total Net Assets - 100.0%			$	49,144,713

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 6.
	plc — Public Limited Company
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	48,970,914	$	—	$	—	$	48,970,914
Repurchase Agreements		—		251,209		—		251,209
Total Assets	$	48,970,914	$	251,209	$	—	$	49,222,123

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

S&P 500^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value (cost $44,002,907)	$	48,970,914
Repurchase agreements, at value (cost $251,209)		251,209
Cash		10,484
Receivables:
Dividends		58,524
Fund shares sold		3,176
Interest		16
Total assets		49,294,323
Liabilities:
Payable for:
Fund shares redeemed		38,916
Management fees		31,073
Professional fees		15,629
Printing fees		14,168
Distribution and service fees		11,617
Transfer agent and administrative fees		10,358
Portfolio accounting fees		4,143
Trustees’ fees*		946
Miscellaneous		22,760
Total liabilities		149,610
Commitments and contingent liabilities (Note 11)		—
Net assets	$	49,144,713
Net assets consist of:
Paid in capital	$	47,446,021
Total distributable earnings (loss)		1,698,692
Net assets	$	49,144,713
A-Class:
Net assets	$	3,147,850
Capital shares outstanding		39,980
Net asset value per share	$	78.74
Maximum offering price per share (Net asset value divided by 95.25%)	$	82.67
C-Class:
Net assets	$	2,211,509
Capital shares outstanding		33,061
Net asset value per share	$	66.89
H-Class:
Net assets	$	43,785,354
Capital shares outstanding		553,729
Net asset value per share	$	79.07

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	683,007
Interest		2,618
Income from securities lending, net		11,764
Total investment income		697,389
Expenses:
Management fees		189,894
Distribution and service fees:
A-Class		4,067
C-Class		24,579
H-Class		53,086
Transfer agent and administrative fees		63,298
Portfolio accounting fees		25,319
Registration fees		23,301
Trustees’ fees*		6,018
Custodian fees		3,576
Line of credit fees		5
Miscellaneous		34,654
Total expenses		427,797
Net investment income		269,592
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,842,119
Net realized gain		1,842,119
Net change in unrealized appreciation (depreciation) on:
Investments		(391,572	)
Net change in unrealized appreciation (depreciation)		(391,572	)
Net realized and unrealized gain		1,450,547
Net increase in net assets resulting from operations	$	1,720,139

^* 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 | 21

S&P 500^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	269,592		$	667,896
Net realized gain on investments		1,842,119			526,450
Net change in unrealized appreciation (depreciation) on investments		(391,572	)		(5,246,075	)
Net increase (decrease) in net assets resulting from operations		1,720,139			(4,051,729	)
Distributions to shareholders:
A-Class		—			(437,999	)
C-Class		—			(226,269	)
H-Class		—			(4,111,371	)
Total distributions to shareholders		—			(4,775,639	)
Capital share transactions:
Proceeds from sale of shares
A-Class		788,184			7,532,490
C-Class		8,011,559			20,662,832
H-Class		63,922,019			110,771,594
Distributions reinvested
A-Class		—			399,027
C-Class		—			218,319
H-Class		—			4,106,739
Cost of shares redeemed
A-Class		(1,269,837	)		(9,948,084	)
C-Class		(8,185,541	)		(22,301,020	)
H-Class		(65,052,416	)		(123,104,778	)
Net decrease from capital share transactions		(1,786,032	)		(11,662,881	)
Net decrease in net assets		(65,893	)		(20,490,249	)
Net assets:
Beginning of period		49,210,606			69,700,855
End of period	$	49,144,713		$	49,210,606
Capital share activity:
Shares sold
A-Class		10,149			87,067
C-Class		123,704			291,103
H-Class		815,914			1,375,940
Shares issued from reinvestment of distributions
A-Class		—			5,474
C-Class		—			3,504
H-Class		—			56,103
Shares redeemed
A-Class		(16,413	)		(119,480	)
C-Class		(126,720	)		(314,385	)
H-Class		(829,664	)		(1,575,202	)
Net decrease in shares		(23,030	)		(189,876	)

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	76.07		$	83.46		$	76.42		$	66.03		$	72.54		$	70.69
Income (loss) from investment operations:
Net investment income (loss)b		.48			.85			.60			.55			.73			.57
Net gain (loss) on investments (realized and unrealized)		2.19			(2.17	)		7.41			10.52			(4.63	)		3.42
Total from investment operations		2.67			(1.32	)		8.01			11.07			(3.90	)		3.99
Less distributions from:
Net investment income		—			(1.14	)		(.27	)		(.68	)		(.98	)		(.07	)
Net realized gains		—			(4.93	)		(.70	)		—			(1.63	)		(2.07	)
Total distributions		—			(6.07	)		(.97	)		(.68	)		(2.61	)		(2.14	)
Net asset value, end of period	$	78.74		$	76.07		$	83.46		$	76.42		$	66.03		$	72.54
Total Returnc		3.51	%		(1.26	%)		10.48	%		16.80	%		(5.44	%)		5.60	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,148		$	3,518		$	6,108		$	6,686		$	11,135		$	16,222
Ratios to average net assets:
Net investment income (loss)		1.24	%		1.01	%		0.74	%		0.79	%		1.08	%		0.78	%
Total expenses		1.62	%		1.61	%		1.53	%		1.53	%		1.50	%		1.51	%
Portfolio turnover rate		136	%		190	%		252	%		321	%		365	%		295	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	64.87		$	72.64		$	67.13		$	58.51		$	65.08		$	64.10
Income (loss) from investment operations:
Net investment income (loss)b		.03			.12			(.03	)		(.01	)		.17			.02
Net gain (loss) on investments (realized and unrealized)		1.99			(1.82	)		6.51			9.31			(4.13	)		3.10
Total from investment operations		2.02			(1.70	)		6.48			9.30			(3.96	)		3.12
Less distributions from:
Net investment income		—			(1.14	)		(.27	)		(.68	)		(.98	)		(.07	)
Net realized gains		—			(4.93	)		(.70	)		—			(1.63	)		(2.07	)
Total distributions		—			(6.07	)		(.97	)		(.68	)		(2.61	)		(2.14	)
Net asset value, end of period	$	66.89		$	64.87		$	72.64		$	67.13		$	58.51		$	65.08
Total Returnc		3.11	%		(2.00	%)		9.66	%		15.94	%		(6.15	%)		4.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,212		$	2,340		$	4,058		$	3,913		$	3,550		$	6,390
Ratios to average net assets:
Net investment income (loss)		0.08	%		0.17	%		(0.05	%)		(0.01	%)		0.28	%		0.03	%
Total expenses		2.37	%		2.36	%		2.28	%		2.28	%		2.25	%		2.25	%
Portfolio turnover rate		136	%		190	%		252	%		321	%		365	%		295	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	76.39		$	83.78		$	76.71		$	66.28		$	72.81		$	70.94
Income (loss) from investment operations:
Net investment income (loss)b		.45			.81			.57			.59			.80			.49
Net gain (loss) on investments (realized and unrealized)		2.23			(2.13	)		7.47			10.52			(4.72	)		3.52
Total from investment operations		2.68			(1.32	)		8.04			11.11			(3.92	)		4.01
Less distributions from:
Net investment income		—			(1.14	)		(.27	)		(.68	)		(.98	)		(.07	)
Net realized gains		—			(4.93	)		(.70	)		—			(1.63	)		(2.07	)
Total distributions		—			(6.07	)		(.97	)		(.68	)		(2.61	)		(2.14	)
Net asset value, end of period	$	79.07		$	76.39		$	83.78		$	76.71		$	66.28		$	72.81
Total Return		3.51	%		(1.25	%)		10.48	%		16.81	%		(5.44	%)		5.60	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	43,785		$	43,352		$	59,536		$	55,613		$	70,983		$	48,920
Ratios to average net assets:
Net investment income (loss)		1.16	%		0.97	%		0.70	%		0.83	%		1.17	%		0.66	%
Total expenses		1.62	%		1.61	%		1.53	%		1.53	%		1.50	%		1.51	%
Portfolio turnover rate		136	%		190	%		252	%		321	%		365	%		295	%

a	Unaudited figures for the period ended September 30, 2019. 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 years presented through March 31, 2017 have been restated to reflect a 2:1 share split effective October 28, 2016.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
Eldorado Resorts, Inc.	2.6%
Churchill Downs, Inc.	2.6%
Amedisys, Inc.	2.4%
Primerica, Inc.	2.2%
Globus Medical, Inc. — Class A	2.2%
Penumbra, Inc.	2.0%
PRA Health Sciences, Inc.	1.9%
Medical Properties Trust, Inc.	1.9%
Deckers Outdoor Corp.	1.7%
Allegheny Technologies, Inc.	1.7%
Top Ten Total	21.2%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	(6.63%)	(14.82%)	2.41%	9.24%
A-Class Shares with sales charge‡	(11.07%)	(18.86%)	1.42%	8.71%
C-Class Shares	(6.98%)	(15.44%)	1.65%	8.42%
C-Class Shares with CDSC§	(7.91%)	(16.16%)	1.65%	8.42%
H-Class Shares	(6.62%)	(14.82%)	2.41%	9.24%
S&P MidCap 400 Pure Growth Index	(6.08%)	(13.65%)	3.91%	10.81%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 25

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Consumer, Non-cyclical - 31.8%
Amedisys, Inc.*		8,660	$	1,134,547
Globus Medical, Inc. — Class A*		20,140		1,029,557
Penumbra, Inc.*,1		7,010		942,775
PRA Health Sciences, Inc.*		8,971		890,192
Helen of Troy Ltd.*		4,370		688,974
Avanos Medical, Inc.*		17,210		644,687
LiveRamp Holdings, Inc.*		14,998		644,314
ASGN, Inc.*		9,590		602,827
Service Corporation International		12,160		581,370
Molina Healthcare, Inc.*		5,259		577,017
STERIS plc		3,850		556,286
Post Holdings, Inc.*		4,870		515,441
Bio-Rad Laboratories, Inc. — Class A*		1,510		502,438
Repligen Corp.*		6,400		490,816
Integra LifeSciences Holdings Corp.*		7,993		480,140
Insperity, Inc.		4,821		475,447
Encompass Health Corp.		7,420		469,538
Sabre Corp.		20,390		456,634
Boston Beer Company, Inc. — Class A*		1,230		447,818
Chemed Corp.		991		413,812
LivaNova plc*		5,534		408,354
WEX, Inc.*		1,830		369,788
Masimo Corp.*		2,329		346,532
Haemonetics Corp.*		2,460		310,304
Adtalem Global Education, Inc.*		6,510		247,966
Ligand Pharmaceuticals, Inc. — Class B*		2,310		229,937
Lancaster Colony Corp.		1,450		201,042
WW International, Inc.*		5,310		200,824
Green Dot Corp. — Class A*		6,690		168,923
Total Consumer, Non-cyclical				15,028,300
Consumer, Cyclical - 16.9%
Eldorado Resorts, Inc.*,1		31,124		1,240,914
Churchill Downs, Inc.		10,041		1,239,612
Deckers Outdoor Corp.*		5,610		826,690
Urban Outfitters, Inc.*		24,379		684,806
Scientific Games Corp. — Class A*		31,605		643,162
Live Nation Entertainment, Inc.*		8,863		587,971
Wendy’s Co.		29,206		583,536
Domino’s Pizza, Inc.		2,119		518,286
FirstCash, Inc.		5,060		463,850
Brinker International, Inc.		10,648		454,350
Wyndham Hotels & Resorts, Inc.		7,418		383,807
Pool Corp.		1,887		380,608
Total Consumer, Cyclical				8,007,592
Financial - 16.0%
Primerica, Inc.		8,341		1,061,225
Medical Properties Trust, Inc. REIT		44,825		876,777
CyrusOne, Inc. REIT		9,925		785,067
American Campus Communities, Inc. REIT		14,319		688,458
LendingTree, Inc.*		2,010		623,965
Omega Healthcare Investors, Inc. REIT		14,553		608,170
UMB Financial Corp.		8,692		561,329
SLM Corp.		58,880		519,616
Brown & Brown, Inc.		14,330		516,740
National Retail Properties, Inc. REIT		8,942		504,329
First Financial Bankshares, Inc.		14,560		485,285
Life Storage, Inc. REIT		3,140		330,987
Total Financial				7,561,948
Technology - 11.7%
Fair Isaac Corp.*		2,461		746,963
MAXIMUS, Inc.		9,416		727,480
Cypress Semiconductor Corp.		30,390		709,303
Semtech Corp.*		14,049		682,922
j2 Global, Inc.		7,321		664,893
Zebra Technologies Corp. — Class A*		2,500		515,925
CommVault Systems, Inc.*		11,090		495,834
PTC, Inc.*		5,370		366,126
Silicon Laboratories, Inc.*		3,135		349,082
ACI Worldwide, Inc.*		9,116		285,559
Total Technology				5,544,087
Industrial - 7.2%
ITT, Inc.		11,473		702,033
Axon Enterprise, Inc.*		9,270		526,351
Woodward, Inc.		4,030		434,555
Lennox International, Inc.		1,721		418,151
Curtiss-Wright Corp.		3,100		401,047
Kennametal, Inc.		10,432		320,680
Trimble, Inc.*		7,885		306,017
MSA Safety, Inc.		2,550		278,230
Total Industrial				3,387,064
Communications - 6.3%
Ciena Corp.*		19,486		764,436
World Wrestling Entertainment, Inc. — Class A1		10,529		749,138
New York Times Co. — Class A		23,591		671,872
Yelp, Inc. — Class A*		12,228		424,923
FactSet Research Systems, Inc.		1,591		386,565
Total Communications				2,996,934
Energy - 3.9%
Murphy Oil Corp.		33,015		729,962
CNX Resources Corp.*		82,840		601,418
Equitrans Midstream Corp.		36,750		534,712
Total Energy				1,866,092
Basic Materials - 3.4%
Allegheny Technologies, Inc.*		40,485		819,821
RPM International, Inc.		6,836		470,385
Chemours Co.		21,174		316,340
Total Basic Materials				1,606,546
Utilities - 2.5%
Black Hills Corp.		7,114		545,857
National Fuel Gas Co.		7,049		330,739

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
UGI Corp.		5,878	$	295,487
Total Utilities				1,172,083
Total Common Stocks
(Cost $40,368,012)				47,170,646
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	146,600		146,600
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		47,142		47,142
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		42,428		42,428
Total Repurchase Agreements
(Cost $236,170)				236,170

	Shares		Value
SECURITIES LENDING COLLATERAL†,3 - 3.9%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		1,835,940	$	1,835,940
Total Securities Lending Collateral
(Cost $1,835,940)				1,835,940
Total Investments - 104.1%
(Cost $42,440,122)			$	49,242,756
Other Assets & Liabilities, net - (4.1)%				(1,927,192	)
Total Net Assets - 100.0%			$	47,315,564

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	47,170,646	$	—	$	—	$	47,170,646
Repurchase Agreements		—		236,170		—		236,170
Securities Lending Collateral		1,835,940		—		—		1,835,940
Total Assets	$	49,006,586	$	236,170	$	—	$	49,242,756

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $1,837,221 of securities loaned (cost $42,203,952)	$	49,006,586
Repurchase agreements, at value (cost $236,170)		236,170
Receivables:
Dividends		35,582
Fund shares sold		7,235
Securities lending income		391
Interest		15
Total assets		49,285,979
Liabilities:
Payable for:
Return of securities lending collateral		1,835,940
Management fees		27,901
Fund shares redeemed		20,615
Distribution and service fees		13,016
Transfer agent and administrative fees		9,300
Portfolio accounting fees		3,720
Trustees’ fees*		1,065
Miscellaneous		58,858
Total liabilities		1,970,415
Commitments and contingent liabilities (Note 11)		—
Net assets	$	47,315,564
Net assets consist of:
Paid in capital	$	50,606,480
Total distributable earnings (loss)		(3,290,916	)
Net assets	$	47,315,564
A-Class:
Net assets	$	8,700,825
Capital shares outstanding		203,106
Net asset value per share	$	42.84
Maximum offering price per share (Net asset value divided by 95.25%)	$	44.98
C-Class:
Net assets	$	6,334,071
Capital shares outstanding		176,594
Net asset value per share	$	35.87
H-Class:
Net assets	$	32,280,668
Capital shares outstanding		752,531
Net asset value per share	$	42.90

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	260,732
Interest		3,266
Income from securities lending, net		1,671
Total investment income		265,669
Expenses:
Management fees		214,818
Distribution and service fees:
A-Class		12,050
C-Class		37,779
H-Class		50,111
Transfer agent and administrative fees		71,606
Registration fees		30,044
Portfolio accounting fees		28,642
Trustees’ fees*		7,766
Custodian fees		4,093
Line of credit fees		65
Miscellaneous		34,329
Total expenses		491,303
Net investment loss		(225,634	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		961,098
Net realized gain		961,098
Net change in unrealized appreciation (depreciation) on:
Investments		(4,896,402	)
Net change in unrealized appreciation (depreciation)		(4,896,402	)
Net realized and unrealized loss		(3,935,304	)
Net decrease in net assets resulting from operations	$	(4,160,938	)

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

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(225,634	)	$	(625,735	)
Net realized gain (loss) on investments		961,098			(3,143,761	)
Net change in unrealized appreciation (depreciation) on investments		(4,896,402	)		(123,715	)
Net decrease in net assets resulting from operations		(4,160,938	)		(3,893,211	)
Distributions to shareholders:
A-Class		—			(1,480,551	)
C-Class		—			(1,352,505	)
H-Class		—			(6,205,701	)
Total distributions to shareholders		—			(9,038,757	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,951,657			9,908,515
C-Class		426,183			1,179,771
H-Class		21,259,393			88,802,650
Distributions reinvested
A-Class		—			1,446,877
C-Class		—			1,337,378
H-Class		—			6,125,144
Cost of shares redeemed
A-Class		(3,285,386	)		(9,974,936	)
C-Class		(2,153,815	)		(6,073,902	)
H-Class		(33,939,554	)		(111,688,160	)
Net decrease from capital share transactions		(15,741,522	)		(18,936,663	)
Net decrease in net assets		(19,902,460	)		(31,868,631	)
Net assets:
Beginning of period		67,218,024			99,086,655
End of period	$	47,315,564		$	67,218,024
Capital share activity:
Shares sold
A-Class		43,869			188,628
C-Class		11,609			26,086
H-Class		476,905			1,713,618
Shares issued from reinvestment of distributions
A-Class		—			33,431
C-Class		—			36,691
H-Class		—			141,328
Shares redeemed
A-Class		(73,546	)		(195,357	)
C-Class		(58,284	)		(134,221	)
H-Class		(767,612	)		(2,151,342	)
Net decrease in shares		(367,059	)		(341,138	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	45.88		$	54.96		$	50.84		$	46.51		$	53.86		$	58.66
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.30	)		(.41	)		(.34	)		(.36	)		(.29	)
Net gain (loss) on investments (realized and unrealized)		(2.89	)		(2.39	)		8.09			5.41			(4.48	)		3.88
Total from investment operations		(3.04	)		(2.69	)		7.68			5.07			(4.84	)		3.59
Less distributions from:
Net realized gains		—			(6.39	)		(3.56	)		(.74	)		(2.51	)		(8.39	)
Total distributions		—			(6.39	)		(3.56	)		(.74	)		(2.51	)		(8.39	)
Net asset value, end of period	$	42.84		$	45.88		$	54.96		$	50.84		$	46.51		$	53.86
Total Returnc		(6.63	%)		(4.19	%)		15.33	%		10.98	%		(9.23	%)		7.18	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,701		$	10,681		$	11,327		$	16,269		$	29,017		$	40,648
Ratios to average net assets:
Net investment income (loss)		(0.68	%)		(0.59	%)		(0.77	%)		(0.71	%)		(0.71	%)		(0.53	%)
Total expenses		1.62	%		1.62	%		1.53	%		1.52	%		1.50	%		1.51	%
Portfolio turnover rate		42	%		165	%		160	%		127	%		143	%		134	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	38.56		$	47.66		$	44.83		$	41.41		$	48.60		$	54.13
Income (loss) from investment operations:
Net investment income (loss)b		(.27	)		(.62	)		(.71	)		(.61	)		(.66	)		(.64	)
Net gain (loss) on investments (realized and unrealized)		(2.42	)		(2.09	)		7.10			4.77			(4.02	)		3.50
Total from investment operations		(2.69	)		(2.71	)		6.39			4.16			(4.68	)		2.86
Less distributions from:
Net realized gains		—			(6.39	)		(3.56	)		(.74	)		(2.51	)		(8.39	)
Total distributions		—			(6.39	)		(3.56	)		(.74	)		(2.51	)		(8.39	)
Net asset value, end of period	$	35.87		$	38.56		$	47.66		$	44.83		$	41.41		$	48.60
Total Returnc		(6.98	%)		(4.90	%)		14.47	%		10.16	%		(9.92	%)		6.39	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,334		$	8,609		$	14,046		$	15,049		$	20,279		$	26,689
Ratios to average net assets:
Net investment income (loss)		(1.44	%)		(1.37	%)		(1.49	%)		(1.44	%)		(1.46	%)		(1.26	%)
Total expenses		2.37	%		2.36	%		2.28	%		2.27	%		2.25	%		2.26	%
Portfolio turnover rate		42	%		165	%		160	%		127	%		143	%		134	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	45.94		$	55.03		$	50.89		$	46.56		$	53.91		$	58.71
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.34	)		(.40	)		(.33	)		(.36	)		(.29	)
Net gain (loss) on investments (realized and unrealized)		(2.89	)		(2.36	)		8.10			5.40			(4.48	)		3.88
Total from investment operations		(3.04	)		(2.70	)		7.70			5.07			(4.84	)		3.59
Less distributions from:
Net realized gains		—			(6.39	)		(3.56	)		(.74	)		(2.51	)		(8.39	)
Total distributions		—			(6.39	)		(3.56	)		(.74	)		(2.51	)		(8.39	)
Net asset value, end of period	$	42.90		$	45.94		$	55.03		$	50.89		$	46.56		$	53.91
Total Return		(6.62	%)		(4.19	%)		15.32	%		10.99	%		(9.22	%)		7.18	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	32,281		$	47,929		$	73,714		$	78,373		$	94,915		$	124,672
Ratios to average net assets:
Net investment income (loss)		(0.69	%)		(0.64	%)		(0.74	%)		(0.68	%)		(0.71	%)		(0.52	%)
Total expenses		1.62	%		1.61	%		1.53	%		1.53	%		1.50	%		1.51	%
Portfolio turnover rate		42	%		165	%		160	%		127	%		143	%		134	%

a	Unaudited figures for the period ended September 30, 2019. 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 | 31

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
KB Home	3.3%
World Fuel Services Corp.	2.8%
AutoNation, Inc.	2.7%
SYNNEX Corp.	2.3%
Tech Data Corp.	2.1%
AECOM	2.1%
TRI Pointe Group, Inc.	2.1%
Legg Mason, Inc.	2.1%
Bed Bath & Beyond, Inc.	2.0%
Ryder System, Inc.	2.0%
Top Ten Total	23.5%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	(3.49%)	(11.15%)	4.23%	8.45%
A-Class Shares with sales charge‡	(8.06%)	(15.37%)	3.22%	7.92%
C-Class Shares	(3.84%)	(11.81%)	3.46%	7.63%
C-Class Shares with CDSC§	(4.80%)	(12.66%)	3.46%	7.63%
H-Class Shares	(3.47%)	(11.12%)	4.23%	8.44%
S&P MidCap 400 Pure Value Index	(2.38%)	(9.21%)	6.33%	11.05%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P MidCap 400 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

32 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
Consumer, Cyclical - 27.8%
KB Home		4,175	$	141,950
World Fuel Services Corp.		3,024		120,779
AutoNation, Inc.*		2,303		116,762
TRI Pointe Group, Inc.*		6,001		90,255
Bed Bath & Beyond, Inc.1		8,166		86,886
Dillard’s, Inc. — Class A1		1,303		86,141
Goodyear Tire & Rubber Co.		5,364		77,269
Dana, Inc.		4,896		70,698
Toll Brothers, Inc.		1,685		69,170
Dick’s Sporting Goods, Inc.		1,434		58,522
Thor Industries, Inc.		816		46,218
Caesars Entertainment Corp.*		3,862		45,031
Marriott Vacations Worldwide Corp.		353		36,574
Resideo Technologies, Inc.*		2,477		35,545
Delphi Technologies plc		2,627		35,202
JetBlue Airways Corp.*		2,079		34,823
Adient plc		1,466		33,659
Casey’s General Stores, Inc.		132		21,273
Total Consumer, Cyclical				1,206,757
Industrial - 27.0%
SYNNEX Corp.		881		99,465
Tech Data Corp.*		883		92,044
AECOM*		2,415		90,707
Ryder System, Inc.		1,676		86,767
Arrow Electronics, Inc.*		1,042		77,712
Avnet, Inc.		1,717		76,381
Jabil, Inc.		2,117		75,725
AGCO Corp.		711		53,823
MasTec, Inc.*		802		52,074
Colfax Corp.*		1,768		51,378
Trinity Industries, Inc.		2,602		51,207
Knight-Swift Transportation Holdings, Inc.		1,304		47,335
Fluor Corp.		2,346		44,879
Owens Corning		622		39,310
EMCOR Group, Inc.		411		35,395
Oshkosh Corp.		397		30,092
Silgan Holdings, Inc.		779		23,397
Terex Corp.		876		22,750
Belden, Inc.		424		22,616
Timken Co.		484		21,059
Werner Enterprises, Inc.		566		19,980
Worthington Industries, Inc.		512		18,458
Owens-Illinois, Inc.		1,780		18,281
Granite Construction, Inc.		568		18,250
Total Industrial				1,169,085
Financial - 21.5%
Legg Mason, Inc.		2,344		89,517
Brighthouse Financial, Inc.*		1,920		77,702
Jefferies Financial Group, Inc.		3,888		71,539
Reinsurance Group of America, Inc. — Class A		354		56,598
Navient Corp.		4,235		54,208
Alleghany Corp.*		57		45,472
New York Community Bancorp, Inc.		3,585		44,992
Janus Henderson Group plc		1,954		43,887
Stifel Financial Corp.		709		40,683
Bank OZK		1,426		38,887
First American Financial Corp.		654		38,593
Old Republic International Corp.		1,577		37,170
CNO Financial Group, Inc.		2,198		34,794
Alexander & Baldwin, Inc. REIT		1,366		33,481
Sabra Health Care REIT, Inc. REIT		1,431		32,856
PacWest Bancorp		697		25,329
Washington Federal, Inc.		605		22,379
Jones Lang LaSalle, Inc.		158		21,971
Senior Housing Properties Trust REIT		2,354		21,786
Umpqua Holdings Corp.		1,286		21,167
Associated Banc-Corp.		1,036		20,979
Hancock Whitney Corp.		525		20,105
First Horizon National Corp.		1,235		20,007
Pinnacle Financial Partners, Inc.		316		17,933
Total Financial				932,035
Consumer, Non-cyclical - 9.1%
ManpowerGroup, Inc.		881		74,216
Avis Budget Group, Inc.*		1,782		50,359
Pilgrim’s Pride Corp.*		1,361		43,613
Patterson Companies, Inc.		2,185		38,937
Sanderson Farms, Inc.		253		38,287
Acadia Healthcare Company, Inc.*		1,210		37,607
Graham Holdings Co. — Class B		49		32,509
Hain Celestial Group, Inc.*		1,333		28,626
TreeHouse Foods, Inc.*		452		25,063
MEDNAX, Inc.*		906		20,493
Spectrum Brands Holdings, Inc.		100		5,296
Total Consumer, Non-cyclical				395,006
Basic Materials - 8.2%
Reliance Steel & Aluminum Co.		802		79,927
Olin Corp.		2,751		51,499
United States Steel Corp.1		4,297		49,630
Commercial Metals Co.		2,555		44,406
Carpenter Technology Corp.		831		42,930
Domtar Corp.		1,041		37,278
Minerals Technologies, Inc.		477		25,324
Steel Dynamics, Inc.		795		23,691
Total Basic Materials				354,685
Energy - 3.4%
Murphy USA, Inc.*		627		53,483
Patterson-UTI Energy, Inc.		3,617		30,925
Oceaneering International, Inc.*		2,139		28,984
Equities Corp.		1,595		16,971
Oasis Petroleum, Inc.*		4,682		16,200
Total Energy				146,563
Technology - 1.5%
CACI International, Inc. — Class A*		120		27,751
Perspecta, Inc.		876		22,881

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
NetScout Systems, Inc.*		699	$	16,119
Total Technology				66,751
Communications - 1.0%
Telephone & Data Systems, Inc.		1,705		43,989
Total Common Stocks
(Cost $3,690,795)				4,314,871
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	23,032		23,032
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		7,406		7,406
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		6,665		6,665
Total Repurchase Agreements
(Cost $37,103)				37,103
		Shares
SECURITIES LENDING COLLATERAL†,3 - 3.4%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		146,673		146,673
Total Securities Lending Collateral
(Cost $146,673)				146,673
Total Investments - 103.7%
(Cost $3,874,571)			$	4,498,647
Other Assets & Liabilities, net - (3.7)%				(161,552	)
Total Net Assets - 100.0%			$	4,337,095

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	4,314,871	$	—	$	—	$	4,314,871
Repurchase Agreements		—		37,103		—		37,103
Securities Lending Collateral		146,673		—		—		146,673
Total Assets	$	4,461,544	$	37,103	$	—	$	4,498,647

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $150,037 of securities loaned (cost $3,837,468)	$	4,461,544
Repurchase agreements, at value (cost $37,103)		37,103
Receivables:
Securities sold		120,461
Dividends		9,894
Securities lending income		3,001
Fund shares sold		2,066
Interest		2
Total assets		4,634,071
Liabilities:
Payable for:
Return of securities lending collateral		146,673
Fund shares redeemed		122,035
Management fees		6,707
Distribution and service fees		2,807
Transfer agent and administrative fees		2,236
Portfolio accounting fees		894
Trustees’ fees*		283
Miscellaneous		15,341
Total liabilities		296,976
Commitments and contingent liabilities (Note 11)		—
Net assets	$	4,337,095
Net assets consist of:
Paid in capital	$	6,596,205
Total distributable earnings (loss)		(2,259,110	)
Net assets	$	4,337,095
A-Class:
Net assets	$	1,029,068
Capital shares outstanding		20,654
Net asset value per share	$	49.82
Maximum offering price per share (Net asset value divided by 95.25%)	$	52.30
C-Class:
Net assets	$	994,003
Capital shares outstanding		22,815
Net asset value per share	$	43.57
H-Class:
Net assets	$	2,314,024
Capital shares outstanding		46,515
Net asset value per share	$	49.75

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	143,940
Income from securities lending, net		8,964
Interest		993
Total investment income		153,897
Expenses:
Management fees		58,068
Distribution and service fees:
A-Class		1,375
C-Class		6,502
H-Class		16,355
Transfer agent and administrative fees		19,356
Portfolio accounting fees		7,742
Registration fees		6,359
Trustees’ fees*		1,851
Custodian fees		1,094
Line of credit fees		11
Miscellaneous		11,445
Total expenses		130,158
Net investment income		23,739
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(386,965	)
Net realized loss		(386,965	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,038,099	)
Net change in unrealized appreciation (depreciation)		(1,038,099	)
Net realized and unrealized loss		(1,425,064	)
Net decrease in net assets resulting from operations	$	(1,401,325	)

^* 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 | 35

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	23,739		$	(29,720	)
Net realized loss on investments		(386,965	)		(308,470	)
Net change in unrealized appreciation (depreciation) on investments		(1,038,099	)		150,200
Net decrease in net assets resulting from operations		(1,401,325	)		(187,990	)
Distributions to shareholders:
A-Class		—			(45,986	)
C-Class		—			(43,988	)
H-Class		—			(196,579	)
Total distributions to shareholders		—			(286,553	)
Capital share transactions:
Proceeds from sale of shares
A-Class		508,985			3,525,367
C-Class		47,554			2,050,559
H-Class		79,860,818			66,894,202
Distributions reinvested
A-Class		—			33,094
C-Class		—			43,697
H-Class		—			195,599
Cost of shares redeemed
A-Class		(648,807	)		(3,336,488	)
C-Class		(859,427	)		(2,030,965	)
H-Class		(87,144,100	)		(63,758,018	)
Net increase (decrease) from capital share transactions		(8,234,977	)		3,617,047
Net increase (decrease) in net assets		(9,636,302	)		3,142,504
Net assets:
Beginning of period		13,973,397			10,830,893
End of period	$	4,337,095		$	13,973,397
Capital share activity:
Shares sold
A-Class		9,801			64,344
C-Class		1,078			43,351
H-Class		1,580,832			1,255,133
Shares issued from reinvestment of distributions
A-Class		—			691
C-Class		—			1,038
H-Class		—			4,094
Shares redeemed
A-Class		(12,456	)		(62,058	)
C-Class		(18,915	)		(42,998	)
H-Class		(1,746,363	)		(1,195,323	)
Net increase (decrease) in shares		(186,023	)		68,272

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

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	51.62		$	53.32		$	51.39		$	42.43		$	45.68		$	43.04
Income (loss) from investment operations:
Net investment income (loss)b		.16			(.04	)		.02			(.08	)		.16			.11
Net gain (loss) on investments (realized and unrealized)		(1.96	)		(.17	)		2.89			9.14			(3.30	)		2.58
Total from investment operations		(1.80	)		(.21	)		2.91			9.06			(3.14	)		2.69
Less distributions from:
Net investment income		—			(.02	)		—			(.10	)		(.11	)		(.05	)
Net realized gains		—			(1.47	)		(.98	)		—			—			—
Total distributions		—			(1.49	)		(.98	)		(.10	)		(.11	)		(.05	)
Net asset value, end of period	$	49.82		$	51.62		$	53.32		$	51.39		$	42.43		$	45.68
Total Returnc		(3.49	%)		(0.16	%)		5.63	%		21.34	%		(6.88	%)		6.25	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,029		$	1,203		$	1,084		$	2,957		$	4,775		$	1,904
Ratios to average net assets:
Net investment income (loss)		0.64	%		(0.07	%)		0.03	%		(0.17	%)		0.39	%		0.26	%
Total expenses		1.62	%		1.62	%		1.54	%		1.53	%		1.50	%		1.51	%
Portfolio turnover rate		431	%		558	%		506	%		628	%		493	%		638	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	45.31		$	47.35		$	46.08		$	38.33		$	41.59		$	39.48
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.41	)		(.29	)		(.36	)		(.12	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		(1.70	)		(.14	)		2.54			8.21			(3.03	)		2.34
Total from investment operations		(1.74	)		(.55	)		2.25			7.85			(3.15	)		2.16
Less distributions from:
Net investment income		—			(.02	)		—			(.10	)		(.11	)		(.05	)
Net realized gains		—			(1.47	)		(.98	)		—			—			—
Total distributions		—			(1.49	)		(.98	)		(.10	)		(.11	)		(.05	)
Net asset value, end of period	$	43.57		$	45.31		$	47.35		$	46.08		$	38.33		$	41.59
Total Returnc		(3.84	%)		(0.88	%)		4.82	%		20.46	%		(7.58	%)		5.47	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	994		$	1,842		$	1,859		$	3,266		$	2,165		$	3,033
Ratios to average net assets:
Net investment income (loss)		(0.17	%)		(0.85	%)		(0.62	%)		(0.85	%)		(0.30	%)		(0.44	%)
Total expenses		2.37	%		2.37	%		2.28	%		2.28	%		2.25	%		2.26	%
Portfolio turnover rate		431	%		558	%		506	%		628	%		493	%		638	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	51.54		$	53.25		$	51.33		$	42.38		$	45.62		$	42.98
Income (loss) from investment operations:
Net investment income (loss)b		.08			(.07	)		.04			(.07	)		.20			.11
Net gain (loss) on investments (realized and unrealized)		(1.87	)		(.15	)		2.86			9.12			(3.33	)		2.58
Total from investment operations		(1.79	)		(.22	)		2.90			9.05			(3.13	)		2.69
Less distributions from:
Net investment income		—			(.02	)		—			(.10	)		(.11	)		(.05	)
Net realized gains		—			(1.47	)		(.98	)		—			—			—
Total distributions		—			(1.49	)		(.98	)		(.10	)		(.11	)		(.05	)
Net asset value, end of period	$	49.75		$	51.54		$	53.25		$	51.33		$	42.38		$	45.62
Total Return		(3.47	%)		(0.16	%)		5.58	%		21.36	%		(6.86	%)		6.26	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,314		$	10,928		$	7,888		$	21,143		$	48,048		$	8,968
Ratios to average net assets:
Net investment income (loss)		0.33	%		(0.13	%)		0.08	%		(0.16	%)		0.47	%		0.25	%
Total expenses		1.62	%		1.62	%		1.53	%		1.53	%		1.51	%		1.51	%
Portfolio turnover rate		431	%		558	%		506	%		628	%		493	%		638	%

a	Unaudited figures for the period ended September 30, 2019. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
Avon Products, Inc.	2.9%
Shake Shack, Inc. — Class A	2.5%
Medpace Holdings, Inc.	1.9%
Perficient, Inc.	1.7%
NeoGenomics, Inc.	1.6%
Innovative Industrial Properties, Inc.	1.5%
CONMED Corp.	1.5%
KEMET Corp.	1.4%
Cardiovascular Systems, Inc.	1.4%
Nanometrics, Inc.	1.3%
Top Ten Total	17.7%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	(6.12%)	(20.95%)	6.11%	9.90%
A-Class Shares with sales charge‡	(10.57%)	(24.70%)	5.08%	9.37%
C-Class Shares	(6.48%)	(21.54%)	5.32%	9.08%
C-Class Shares with CDSC§	(7.41%)	(22.26%)	5.32%	9.08%
H-Class Shares	(6.12%)	(20.94%)	6.11%	9.90%
S&P SmallCap 600 Pure Growth Index	(5.25%)	(19.46%)	8.06%	12.13%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Growth Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 39

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.7%
Consumer, Non-cyclical - 29.8%
Avon Products, Inc.*		52,240	$	229,856
Medpace Holdings, Inc.*		1,800		151,272
NeoGenomics, Inc.*		6,730		128,678
CONMED Corp.		1,250		120,188
Cardiovascular Systems, Inc.*		2,270		107,870
Xencor, Inc.*		2,540		85,674
Tactile Systems Technology, Inc.*		1,830		77,446
Medifast, Inc.		730		75,650
Arrowhead Pharmaceuticals, Inc.*		2,450		69,041
Career Education Corp.*		4,330		68,804
WD-40 Co.		366		67,176
Inter Parfums, Inc.		957		66,961
Luminex Corp.		3,226		66,617
Supernus Pharmaceuticals, Inc.*		2,313		63,561
Neogen Corp.*		902		61,435
Eagle Pharmaceuticals, Inc.*		1,080		61,096
AngioDynamics, Inc.*		3,275		60,325
Cardtronics plc — Class A*		1,650		49,896
Innoviva, Inc.*		4,482		47,240
Integer Holdings Corp.*		620		46,847
HMS Holdings Corp.*		1,310		45,149
Harsco Corp.*		2,328		44,139
Monro, Inc.		520		41,085
Ensign Group, Inc.		855		40,553
Corcept Therapeutics, Inc.*		2,861		40,440
Heska Corp.*		534		37,845
Care.com, Inc.*		3,440		35,948
CorVel Corp.*		472		35,730
Addus HomeCare Corp.*		380		30,126
Strategic Education, Inc.		220		29,894
AMN Healthcare Services, Inc.*		514		29,586
Amphastar Pharmaceuticals, Inc.*		1,415		28,059
American Public Education, Inc.*		1,240		27,701
Surmodics, Inc.*		569		26,026
CryoLife, Inc.*		840		22,806
REGENXBIO, Inc.*		620		22,072
Forrester Research, Inc.		530		17,034
Merit Medical Systems, Inc.*		525		15,991
Tivity Health, Inc.*		955		15,882
Spectrum Pharmaceuticals, Inc.*		1,900		15,760
Endo International plc*		4,760		15,280
BioTelemetry, Inc.*		375		15,274
Vanda Pharmaceuticals, Inc.*		1,120		14,874
Meridian Bioscience, Inc.		1,340		12,717
Total Consumer, Non-cyclical				2,365,604
Financial - 16.5%
Innovative Industrial Properties, Inc. REIT1		1,320		121,928
Agree Realty Corp. REIT		1,210		88,511
RLI Corp.		790		73,399
Four Corners Property Trust, Inc. REIT		2,528		71,492
Redwood Trust, Inc. REIT		3,760		61,702
eHealth, Inc.*		885		59,109
Armada Hoffler Properties, Inc. REIT		3,180		57,526
United Fire Group, Inc.		1,170		54,967
Old National Bancorp		3,173		54,591
Triumph Bancorp, Inc.*		1,703		54,309
Blucora, Inc.*		2,360		51,070
LegacyTexas Financial Group, Inc.		1,102		47,970
HCI Group, Inc.		1,140		47,925
Independent Bank Corp.		640		47,776
Easterly Government Properties, Inc. REIT		2,200		46,860
Urstadt Biddle Properties, Inc. — Class A REIT		1,730		41,001
Community Bank System, Inc.		660		40,715
Universal Insurance Holdings, Inc.		1,310		39,287
Marcus & Millichap, Inc.*		1,030		36,555
City Holding Co.		470		35,838
Washington Prime Group, Inc. REIT1		8,102		33,542
Community Healthcare Trust, Inc. REIT		730		32,522
Seacoast Banking Corporation of Florida*		1,189		30,094
National Storage Affiliates Trust REIT		850		28,365
Glacier Bancorp, Inc.		640		25,894
Westamerica Bancorporation		400		24,872
Total Financial				1,307,820
Consumer, Cyclical - 16.0%
Shake Shack, Inc. — Class A*		1,996		195,688
Wingstop, Inc.		1,174		102,467
Regis Corp.*		3,620		73,196
Guess?, Inc.		3,930		72,823
Shoe Carnival, Inc.		2,210		71,626
Sleep Number Corp.*		1,706		70,492
Cavco Industries, Inc.*		317		60,893
iRobot Corp.*,1		944		58,216
BJ’s Restaurants, Inc.		1,480		57,483
Allegiant Travel Co. — Class A		370		55,374
Marcus Corp.		1,490		55,145
UniFirst Corp.		230		44,878
Mobile Mini, Inc.		1,180		43,495
Dorman Products, Inc.*		539		42,872
Crocs, Inc.*		1,520		42,195
Children’s Place, Inc.		530		40,805
Ruth’s Hospitality Group, Inc.		1,920		39,197
Kontoor Brands, Inc.		930		32,643
El Pollo Loco Holdings, Inc.*		2,790		30,578
Dave & Buster’s Entertainment, Inc.		726		28,278
Dine Brands Global, Inc.		370		28,068
Tailored Brands, Inc.1		5,400		23,760
Total Consumer, Cyclical				1,270,172
Industrial - 10.5%
KEMET Corp.		6,046		109,916
SPX Corp.*		2,150		86,021
DXP Enterprises, Inc.*		2,053		71,280
Matson, Inc.		1,810		67,893
Vicor Corp.*		2,261		66,745
Franklin Electric Company, Inc.		1,176		56,225
Exponent, Inc.		700		48,930
Mesa Laboratories, Inc.		190		45,177
AeroVironment, Inc.*		820		43,919

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
ESCO Technologies, Inc.		540	$	42,963
Proto Labs, Inc.*		420		42,882
Albany International Corp. — Class A		470		42,375
Aerojet Rocketdyne Holdings, Inc.*		659		33,286
US Ecology, Inc.		430		27,494
National Presto Industries, Inc.		290		25,836
Raven Industries, Inc.		770		25,764
Total Industrial				836,706
Technology - 9.2%
Nanometrics, Inc.*		3,234		105,493
SPS Commerce, Inc.*		1,746		82,184
Tabula Rasa HealthCare, Inc.*,1		1,430		78,564
Cabot Microelectronics Corp.		516		72,864
Bottomline Technologies DE, Inc.*		1,543		60,717
Unisys Corp.*		7,278		54,075
CTS Corp.		1,480		47,893
Agilysys, Inc.*		1,845		47,250
Omnicell, Inc.*		609		44,013
Brooks Automation, Inc.		1,180		43,696
Virtusa Corp.*		980		35,300
3D Systems Corp.*,1		3,787		30,864
NextGen Healthcare, Inc.*		1,475		23,113
Total Technology				726,026
Energy - 8.7%
Renewable Energy Group, Inc.*		5,645		84,704
QEP Resources, Inc.		18,430		68,191
Callon Petroleum Co.*		14,690		63,755
DMC Global, Inc.1		1,370		60,253
Valaris plc*		12,370		59,500
Archrock, Inc.		5,314		52,981
Denbury Resources, Inc.*		42,850		50,991
SunCoke Energy, Inc.*		8,697		49,051
Penn Virginia Corp.*		1,679		48,808
HighPoint Resources Corp.*		30,530		48,543
ProPetro Holding Corp.*		4,860		44,177
Carrizo Oil & Gas, Inc.*		3,330		28,588
KLX Energy Services Holdings, Inc.*		3,176		27,456
Total Energy				686,998
Communications - 6.3%
Perficient, Inc.*		3,550		136,959
Iridium Communications, Inc.*		3,690		78,523
Liquidity Services, Inc.*		7,210		53,354
Harmonic, Inc.*		6,360		41,849
8x8, Inc.*		1,620		33,566
EW Scripps Co. — Class A		2,517		33,426
Viavi Solutions, Inc.*		2,310		32,351
QuinStreet, Inc.*		2,468		31,072
Stamps.com, Inc.*		410		30,525
ATN International, Inc.		510		29,769
Total Communications				501,394
Basic Materials - 2.7%
Kaiser Aluminum Corp.		830		82,145
Innospec, Inc.		730		65,072
Hawkins, Inc.		1,173		49,853
Quaker Chemical Corp.		120		18,977
Total Basic Materials				216,047
Total Common Stocks
(Cost $6,383,872)				7,910,767
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	33,337		33,337
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		10,720		10,720
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		9,648		9,648
Total Repurchase Agreements
(Cost $53,705)				53,705
	Shares
SECURITIES LENDING COLLATERAL†,3 - 2.8%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%4		221,319		221,319
Total Securities Lending Collateral
(Cost $221,319)				221,319
Total Investments - 103.2%
(Cost $6,658,896)			$	8,185,791
Other Assets & Liabilities, net - (3.2)%				(249,765	)
Total Net Assets - 100.0%			$	7,936,026

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
S&P SMALLCAP 600® PURE GROWTH FUND

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	Securities lending collateral — See Note 7.
4	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	7,910,767	$	—	$	—	$	7,910,767
Repurchase Agreements		—		53,705		—		53,705
Securities Lending Collateral		221,319		—		—		221,319
Total Assets	$	8,132,086	$	53,705	$	—	$	8,185,791

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $213,311 of securities loaned (cost $6,605,191)	$	8,132,086
Repurchase agreements, at value (cost $53,705)		53,705
Receivables:
Securities sold		163,491
Dividends		6,438
Fund shares sold		3,836
Securities lending income		269
Interest		3
Total assets		8,359,828
Liabilities:
Payable for:
Return of securities lending collateral		221,319
Fund shares redeemed		181,188
Management fees		4,874
Distribution and service fees		2,161
Transfer agent and administrative fees		1,625
Portfolio accounting fees		650
Trustees’ fees*		207
Miscellaneous		11,778
Total liabilities		423,802
Commitments and contingent liabilities (Note 11)		—
Net assets	$	7,936,026
Net assets consist of:
Paid in capital	$	8,346,941
Total distributable earnings (loss)		(410,915	)
Net assets	$	7,936,026
A-Class:
Net assets	$	2,313,021
Capital shares outstanding		37,778
Net asset value per share	$	61.23
Maximum offering price per share (Net asset value divided by 95.25%)	$	64.28
C-Class:
Net assets	$	902,067
Capital shares outstanding		16,754
Net asset value per share	$	53.84
H-Class:
Net assets	$	4,720,938
Capital shares outstanding		77,112
Net asset value per share	$	61.22

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	50,229
Interest		741
Income from securities lending, net		3,114
Total investment income		54,084
Expenses:
Management fees		41,505
Distribution and service fees:
A-Class		2,993
C-Class		5,450
H-Class		9,479
Transfer agent and administrative fees		13,835
Registration fees		6,403
Portfolio accounting fees		5,534
Trustees’ fees*		1,723
Custodian fees		797
Line of credit fees		2
Miscellaneous		5,758
Total expenses		93,479
Net investment loss		(39,395	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(95,675	)
Net realized loss		(95,675	)
Net change in unrealized appreciation (depreciation) on:
Investments		(554,015	)
Net change in unrealized appreciation (depreciation)		(554,015	)
Net realized and unrealized loss		(649,690	)
Net decrease in net assets resulting from operations	$	(689,085	)

^* 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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(39,395	)	$	(322,961	)
Net realized loss on investments		(95,675	)		(170,877	)
Net change in unrealized appreciation (depreciation) on investments		(554,015	)		(396,935	)
Net decrease in net assets resulting from operations		(689,085	)		(890,773	)
Distributions to shareholders:
A-Class		—			(199,451	)
C-Class		—			(184,824	)
H-Class		—			(801,038	)
Total distributions to shareholders		—			(1,185,313	)
Capital share transactions:
Proceeds from sale of shares
A-Class		427,242			7,538,860
C-Class		38,270			3,647,297
H-Class		16,128,025			129,539,372
Distributions reinvested
A-Class		—			186,968
C-Class		—			176,270
H-Class		—			791,837
Cost of shares redeemed
A-Class		(361,187	)		(6,699,917	)
C-Class		(312,891	)		(4,578,267	)
H-Class		(18,467,601	)		(137,087,116	)
Net decrease from capital share transactions		(2,548,142	)		(6,484,696	)
Net decrease in net assets		(3,237,227	)		(8,560,782	)
Net assets:
Beginning of period		11,173,253			19,734,035
End of period	$	7,936,026		$	11,173,253
Capital share activity:
Shares sold
A-Class		6,615			96,228
C-Class		663			52,419
H-Class		256,926			1,703,060
Shares issued from reinvestment of distributions
A-Class		—			2,842
C-Class		—			3,029
H-Class		—			12,038
Shares redeemed
A-Class		(5,590	)		(88,180	)
C-Class		(5,650	)		(70,247	)
H-Class		(295,215	)		(1,815,964	)
Net decrease in shares		(42,251	)		(104,775	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	65.22		$	71.79		$	65.58		$	52.28		$	58.90		$	52.99
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.70	)		(.63	)		(.41	)		(.20	)		(.46	)
Net gain (loss) on investments (realized and unrealized)		(3.80	)		(.94	)		9.35			13.71			(6.42	)		6.37
Total from investment operations		(3.99	)		(1.64	)		8.72			13.30			(6.62	)		5.91
Less distributions from:
Net realized gains		—			(4.93	)		(2.51	)		—			—			—
Total distributions		—			(4.93	)		(2.51	)		—			—			—
Net asset value, end of period	$	61.23		$	65.22		$	71.79		$	65.58		$	52.28		$	58.90
Total Returnc		(6.12	%)		(2.34	%)		13.41	%		25.44	%		(11.24	%)		11.15	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,313		$	2,397		$	1,857		$	2,526		$	2,451		$	2,825
Ratios to average net assets:
Net investment income (loss)		(0.59	%)		(0.93	%)		(0.91	%)		(0.71	%)		(0.36	%)		(0.88	%)
Total expenses		1.62	%		1.62	%		1.53	%		1.52	%		1.50	%		1.51	%
Portfolio turnover rate		166	%		421	%		643	%		818	%		309	%		380	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	57.57		$	64.43		$	59.55		$	47.82		$	54.28		$	49.21
Income (loss) from investment operations:
Net investment income (loss)b		(.38	)		(1.16	)		(.96	)		(.79	)		(.62	)		(.74	)
Net gain (loss) on investments (realized and unrealized)		(3.35	)		(.77	)		8.35			12.52			(5.84	)		5.81
Total from investment operations		(3.73	)		(1.93	)		7.39			11.73			(6.46	)		5.07
Less distributions from:
Net realized gains		—			(4.93	)		(2.51	)		—			—			—
Total distributions		—			(4.93	)		(2.51	)		—			—			—
Net asset value, end of period	$	53.84		$	57.57		$	64.43		$	59.55		$	47.82		$	54.28
Total Returnc		(6.48	%)		(3.06	%)		12.52	%		24.51	%		(11.90	%)		10.30	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	902		$	1,252		$	2,354		$	3,054		$	2,542		$	5,436
Ratios to average net assets:
Net investment income (loss)		(1.36	%)		(1.70	%)		(1.52	%)		(1.48	%)		(1.19	%)		(1.50	%)
Total expenses		2.37	%		2.36	%		2.28	%		2.28	%		2.25	%		2.25	%
Portfolio turnover rate		166	%		421	%		643	%		818	%		309	%		380	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	65.21		$	71.78		$	65.58		$	52.27		$	58.89		$	52.99
Income (loss) from investment operations:
Net investment income (loss)b		(.21	)		(.77	)		(.55	)		(.44	)		(.28	)		(.31	)
Net gain (loss) on investments (realized and unrealized)		(3.78	)		(.87	)		9.26			13.75			(6.34	)		6.21
Total from investment operations		(3.99	)		(1.64	)		8.71			13.31			(6.62	)		5.90
Less distributions from:
Net realized gains		—			(4.93	)		(2.51	)		—			—			—
Total distributions		—			(4.93	)		(2.51	)		—			—			—
Net asset value, end of period	$	61.22		$	65.21		$	71.78		$	65.58		$	52.27		$	58.89
Total Return		(6.12	%)		(2.33	%)		13.38	%		25.46	%		(11.24	%)		11.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,721		$	7,525		$	15,523		$	31,750		$	25,046		$	50,810
Ratios to average net assets:
Net investment income (loss)		(0.66	%)		(0.99	%)		(0.80	%)		(0.75	%)		(0.49	%)		(0.58	%)
Total expenses		1.61	%		1.61	%		1.53	%		1.53	%		1.50	%		1.49	%
Portfolio turnover rate		166	%		421	%		643	%		818	%		309	%		380	%

a	Unaudited figures for the period ended September 30, 2019. 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.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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)
Sonic Automotive, Inc. — Class A	2.5%
Group 1 Automotive, Inc.	2.0%
Ultra Clean Holdings, Inc.	1.9%
William Lyon Homes — Class A	1.9%
Griffon Corp.	1.9%
M/I Homes, Inc.	1.8%
Hibbett Sports, Inc.	1.8%
Meritage Homes Corp.	1.7%
Century Communities, Inc.	1.7%
GMS, Inc.	1.7%
Top Ten Total	18.9%
“Ten Largest Holdings” excludes any temporary cash investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	(2.75%)	(17.16%)	1.18%	5.08%
A-Class Shares with sales charge‡	(7.37%)	(21.09%)	0.20%	4.57%
C-Class Shares	(3.12%)	(17.75%)	0.42%	4.28%
C-Class Shares with CDSC§	(4.09%)	(18.58%)	0.42%	4.28%
H-Class Shares	(2.75%)	(17.11%)	1.21%	5.08%
S&P SmallCap 600 Pure Value Index	(1.43%)	(15.24%)	3.24%	7.54%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The S&P SmallCap 600 Pure Value Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 47

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.4%
Consumer, Cyclical - 38.9%
Sonic Automotive, Inc. — Class A		28,711	$	901,813
Group 1 Automotive, Inc.		7,526		694,725
William Lyon Homes — Class A*		33,899		690,184
M/I Homes, Inc.*		17,400		655,110
Hibbett Sports, Inc.*		27,391		627,254
Meritage Homes Corp.*		8,706		612,467
Century Communities, Inc.*		19,959		611,344
GMS, Inc.*		20,871		599,415
Lithia Motors, Inc. — Class A		3,715		491,792
Winnebago Industries, Inc.		11,569		443,671
MDC Holdings, Inc.		8,694		374,711
Genesco, Inc.*		8,051		322,201
Zumiez, Inc.*		9,851		312,030
Anixter International, Inc.*		4,428		306,063
Cato Corp. — Class A		17,307		304,776
Vitamin Shoppe, Inc.*		45,877		299,118
American Axle & Manufacturing Holdings, Inc.*		34,869		286,623
Red Robin Gourmet Burgers, Inc.*		8,542		284,107
Conn’s, Inc.*		9,956		247,506
ScanSource, Inc.*		7,992		244,156
Chico’s FAS, Inc.		60,331		243,134
Core-Mark Holding Company, Inc.		7,198		231,164
Express, Inc.*		66,839		229,926
LGI Homes, Inc.*		2,641		220,048
Wabash National Corp.		14,933		216,678
Office Depot, Inc.		122,824		215,556
Veritiv Corp.*		11,090		200,507
Abercrombie & Fitch Co. — Class A		12,468		194,501
Lumber Liquidators Holdings, Inc.*,1		19,246		189,958
MarineMax, Inc.*		12,094		187,215
EZCORP, Inc. — Class A*		28,161		181,779
Vista Outdoor, Inc.*		27,823		172,224
Cooper-Standard Holdings, Inc.*		4,091		167,240
Haverty Furniture Companies, Inc.		7,899		160,113
Big Lots, Inc.		6,239		152,855
J.C. Penney Company, Inc.*		162,869		144,774
Caleres, Inc.		5,772		135,123
Ethan Allen Interiors, Inc.		5,772		110,245
Titan International, Inc.		39,088		105,538
SkyWest, Inc.		1,835		105,329
Unifi, Inc.*		4,767		104,493
Signet Jewelers Ltd.		6,180		103,577
PriceSmart, Inc.		1,350		95,985
Vera Bradley, Inc.*		9,361		94,546
Bloomin’ Brands, Inc.		4,721		89,369
Motorcar Parts of America, Inc.*		5,131		86,714
Cooper Tire & Rubber Co.		3,284		85,778
G-III Apparel Group Ltd.*		3,131		80,686
Barnes & Noble Education, Inc.*		23,499		73,317
Fossil Group, Inc.*		5,597		70,018
GameStop Corp. — Class A1		7,327		40,445
Total Consumer, Cyclical				13,797,901
Industrial - 19.1%
Griffon Corp.		31,527		661,121
Boise Cascade Co.		12,106		394,534
TTM Technologies, Inc.*		28,863		351,984
Universal Forest Products, Inc.		8,812		351,423
Lydall, Inc.*		12,912		321,638
Olympic Steel, Inc.		22,307		321,221
Benchmark Electronics, Inc.		9,851		286,270
Sanmina Corp.*		8,507		273,160
MYR Group, Inc.*		8,015		250,789
Arcosa, Inc.		6,614		226,265
Echo Global Logistics, Inc.*		9,933		224,983
ArcBest Corp.		7,374		224,538
Patrick Industries, Inc.*		4,861		208,440
US Concrete, Inc.*		3,622		200,224
TopBuild Corp.*		2,068		199,417
Ichor Holdings Ltd.*		8,144		196,922
Aegion Corp. — Class A*		8,939		191,116
TimkenSteel Corp.*		30,171		189,776
SEACOR Holdings, Inc.*		3,856		181,502
CIRCOR International, Inc.*		4,266		160,188
Atlas Air Worldwide Holdings, Inc.*		6,171		155,694
Powell Industries, Inc.		3,435		134,480
Greenbrier Companies, Inc.		4,289		129,185
Comtech Telecommunications Corp.		3,856		125,320
Encore Wire Corp.		1,951		109,802
SPX FLOW, Inc.*		2,524		99,597
Briggs & Stratton Corp.		16,150		97,869
Mueller Industries, Inc.		3,342		95,848
Astec Industries, Inc.		3,061		95,197
Tredegar Corp.		4,592		89,636
Apogee Enterprises, Inc.		2,233		87,065
Bel Fuse, Inc. — Class B		5,014		75,361
Matthews International Corp. — Class A		2,092		74,036
Total Industrial				6,784,601
Consumer, Non-cyclical - 13.5%
Kelly Services, Inc. — Class A		18,334		444,049
Fresh Del Monte Produce, Inc.		11,910		406,250
Magellan Health, Inc.*		5,936		368,625
United Natural Foods, Inc.*		31,433		362,108
Cross Country Healthcare, Inc.*		31,912		328,694
ABM Industries, Inc.		9,033		328,079
Rent-A-Center, Inc.		11,616		299,577
Seneca Foods Corp. — Class A*		9,008		280,870
SpartanNash Co.		21,080		249,376
Lannett Company, Inc.*,1		20,508		229,690
Andersons, Inc.		10,237		229,616
Invacare Corp.		26,842		201,315
Quanex Building Products Corp.		9,524		172,194
TrueBlue, Inc.*		7,783		164,221
Team, Inc.*		8,706		157,143
Universal Corp.		2,350		128,803
Owens & Minor, Inc.		20,298		117,931
Dean Foods Co.1		67,190		77,941
Diplomat Pharmacy, Inc.*		14,396		70,540
Select Medical Holdings Corp.*		4,124		68,335

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
Central Garden & Pet Co. — Class A*		1,893	$	52,484
Assertio Therapeutics, Inc.*		27,239		34,866
Central Garden & Pet Co.*		479		14,001
Total Consumer, Non-cyclical				4,786,708
Financial - 8.9%
Realogy Holdings Corp.1		49,535		330,894
Encore Capital Group, Inc.*		9,548		318,187
INTL FCStone, Inc.*		6,743		276,868
iStar, Inc. REIT		18,673		243,683
Ambac Financial Group, Inc.*		11,907		232,782
Customers Bancorp, Inc.*		8,776		182,014
Stewart Information Services Corp.		3,774		146,393
Third Point Reinsurance Ltd.*		12,678		126,653
Opus Bank		5,504		119,822
Summit Hotel Properties, Inc. REIT		10,108		117,253
Invesco Mortgage Capital, Inc. REIT		7,070		108,242
Horace Mann Educators Corp.		2,290		106,096
PRA Group, Inc.*		3,131		105,796
CBL & Associates Properties, Inc. REIT		80,781		104,207
PennyMac Mortgage Investment Trust REIT		4,499		100,013
Capstead Mortgage Corp. REIT		13,134		96,535
Pacific Premier Bancorp, Inc.		2,629		81,999
Hope Bancorp, Inc.		5,656		81,107
Xenia Hotels & Resorts, Inc. REIT		3,822		80,720
Hersha Hospitality Trust REIT		5,142		76,513
Apollo Commercial Real Estate Finance, Inc. REIT		3,658		70,124
Cedar Realty Trust, Inc. REIT		23,055		69,165
Total Financial				3,175,066
Energy - 6.9%
Par Pacific Holdings, Inc.*		14,526		332,064
Green Plains, Inc.		22,014		233,238
US Silica Holdings, Inc.		21,127		201,974
Range Resources Corp.		51,890		198,220
Helix Energy Solutions Group, Inc.*		22,435		180,826
REX American Resources Corp.*		2,278		173,880
McDermott International, Inc.*,1		85,670		173,053
SM Energy Co.		15,402		149,245
Newpark Resources, Inc.*		16,932		129,022
SRC Energy, Inc.*		25,836		120,396
Laredo Petroleum, Inc.*		43,411		104,621
C&J Energy Services, Inc.*		9,733		104,435
Matrix Service Co.*		5,107		87,534
Exterran Corp.*		5,071		66,227
Oil States International, Inc.*		4,919		65,423
Diamond Offshore Drilling, Inc.*		11,545		64,190
Gulfport Energy Corp.*		21,314		57,761
Ring Energy, Inc.*		11,954		19,605
Total Energy				2,461,714
Basic Materials - 6.2%
PH Glatfelter Co.		28,442		437,722
Kraton Corp.*		11,593		374,338
Clearwater Paper Corp.*		14,349		303,051
Mercer International, Inc.		19,328		242,373
Century Aluminum Co.*		33,291		220,886
Koppers Holdings, Inc.*		5,971		174,413
Rayonier Advanced Materials, Inc.		29,108		126,038
Schweitzer-Mauduit International, Inc.		3,004		112,470
Innophos Holdings, Inc.		3,448		111,922
AdvanSix, Inc.*		4,253		109,387
Total Basic Materials				2,212,600
Technology - 4.3%
Ultra Clean Holdings, Inc.*		47,314		692,441
Insight Enterprises, Inc.*		5,725		318,825
Photronics, Inc.*		16,500		179,520
Pitney Bowes, Inc.		22,576		103,172
Sykes Enterprises, Inc.*		3,050		93,452
Donnelley Financial Solutions, Inc.*		5,667		69,817
TiVo Corp.		8,484		64,606
Total Technology				1,521,833
Communications - 1.6%
Gannett Company, Inc.		26,128		280,615
New Media Investment Group, Inc.1		17,201		151,541
Digi International, Inc.*		7,538		102,667
Frontier Communications Corp.*		38,468		33,352
Total Communications				568,175
Total Common Stocks
(Cost $34,500,085)				35,308,598
RIGHTS†††,2 - 0.0%
A Schulman, Inc.*		1,520		—
Total Rights
(Cost $—)				—
	Face Amount
REPURCHASE AGREEMENTS††,3 - 0.2%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19	$	45,582		45,582
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		14,657		14,657
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		13,192		13,192
Total Repurchase Agreements
(Cost $73,431)				73,431

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,4 - 2.0%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%5		695,208	$	695,208
Total Securities Lending Collateral
(Cost $695,208)				695,208
Total Investments - 101.6%
(Cost $35,268,724)			$	36,077,237
Other Assets & Liabilities, net - (1.6)%				(576,856	)
Total Net Assets - 100.0%			$	35,500,381

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Security was fair valued by the Valuation Committee at September 30, 2019. The total market value of fair valued securities amounts to $0, (cost $0) or 0.0% of total net assets.
3	Repurchase Agreements — See Note 6.
4	Securities lending collateral — See Note 7.
5	Rate indicated is the 7-day yield as of September 30, 2019.
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs			Total
Common Stocks	$	35,308,598	$	—	$	—		$	35,308,598
Rights		—		—		—	*		—
Repurchase Agreements		—		73,431		—			73,431
Securities Lending Collateral		695,208		—		—			695,208
Total Assets	$	36,003,806	$	73,431	$	—		$	36,077,237

^* Includes securities with a market value of $0.

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $650,596 of securities loaned (cost $35,195,293)	$	36,003,806
Repurchase agreements, at value (cost $73,431)		73,431
Receivables:
Fund shares sold		130,832
Dividends		18,739
Securities lending income		733
Interest		5
Total assets		36,227,546
Liabilities:
Payable for:
Return of securities lending collateral		695,208
Management fees		11,225
Distribution and service fees		3,963
Transfer agent and administrative fees		3,742
Portfolio accounting fees		1,497
Fund shares redeemed		1,333
Trustees’ fees*		177
Miscellaneous		10,020
Total liabilities		727,165
Commitments and contingent liabilities (Note 11)		—
Net assets	$	35,500,381
Net assets consist of:
Paid in capital	$	42,364,759
Total distributable earnings (loss)		(6,864,378	)
Net assets	$	35,500,381
A-Class:
Net assets	$	1,308,734
Capital shares outstanding		52,031
Net asset value per share	$	25.15
Maximum offering price per share (Net asset value divided by 95.25%)	$	26.40
C-Class:
Net assets	$	343,301
Capital shares outstanding		16,005
Net asset value per share	$	21.45
H-Class:
Net assets	$	33,848,346
Capital shares outstanding		1,349,109
Net asset value per share	$	25.09

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	64,145
Interest		502
Income from securities lending, net		2,244
Total investment income		66,891
Expenses:
Management fees		31,423
Distribution and service fees:
A-Class		1,399
C-Class		2,968
H-Class		8,334
Transfer agent and administrative fees		10,474
Registration fees		6,323
Portfolio accounting fees		4,190
Trustees’ fees*		1,608
Custodian fees		607
Line of credit fees		32
Miscellaneous		2,741
Total expenses		70,099
Net investment loss		(3,208	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(358,614	)
Net realized loss		(358,614	)
Net change in unrealized appreciation (depreciation) on:
Investments		(184,000	)
Net change in unrealized appreciation (depreciation)		(184,000	)
Net realized and unrealized loss		(542,614	)
Net decrease in net assets resulting from operations	$	(545,822	)

^* 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 | 51

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(3,208	)	$	4,020
Net realized loss on investments		(358,614	)		(597,081	)
Net change in unrealized appreciation (depreciation) on investments		(184,000	)		112,414
Net decrease in net assets resulting from operations		(545,822	)		(480,647	)
Capital share transactions:
Proceeds from sale of shares
A-Class		584,899			3,963,689
C-Class		31,690			1,906,223
H-Class		59,278,272			90,671,854
Cost of shares redeemed
A-Class		(581,035	)		(3,227,735	)
C-Class		(722,238	)		(2,343,774	)
H-Class		(33,991,001	)		(88,932,802	)
Net increase from capital share transactions		24,600,587			2,037,455
Net increase in net assets		24,054,765			1,556,808
Net assets:
Beginning of period		11,445,616			9,888,808
End of period	$	35,500,381		$	11,445,616
Capital share activity:
Shares sold
A-Class		22,806			137,867
C-Class		1,400			76,965
H-Class		2,398,331			3,174,393
Shares redeemed
A-Class		(22,173	)		(114,025	)
C-Class		(33,033	)		(93,594	)
H-Class		(1,400,422	)		(3,098,645	)
Net increase in shares		966,909			82,961

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

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	25.86		$	27.64		$	27.24		$	23.16		$	25.81		$	25.66
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		.06			(.08	)		(.14	)		(.10	)		(.03	)
Net gain (loss) on investments (realized and unrealized)		(.68	)		(1.84	)		.48			4.22			(2.55	)		.18
Total from investment operations		(.71	)		(1.78	)		.40			4.08			(2.65	)		.15
Net asset value, end of period	$	25.15		$	25.86		$	27.64		$	27.24		$	23.16		$	25.81
Total Returnc		(2.75	%)		(6.44	%)		1.47	%		17.62	%		(10.27	%)		0.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,309		$	1,329		$	762		$	1,720		$	1,113		$	1,592
Ratios to average net assets:
Net investment income (loss)		(0.21	%)		0.21	%		(0.30	%)		(0.50	%)		(0.42	%)		(0.10	%)
Total expenses		1.62	%		1.62	%		1.53	%		1.53	%		1.50	%		1.50	%
Portfolio turnover rate		307	%		534	%		1,832	%		1,449	%		417	%		579	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	22.14		$	23.84		$	23.68		$	20.28		$	22.78		$	22.81
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.13	)		(.21	)		(.28	)		(.24	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		(.58	)		(1.57	)		.37			3.68			(2.26	)		.16
Total from investment operations		(.69	)		(1.70	)		.16			3.40			(2.50	)		(.03	)
Net asset value, end of period	$	21.45		$	22.14		$	23.84		$	23.68		$	20.28		$	22.78
Total Returnc		(3.12	%)		(7.13	%)		0.68	%		16.77	%		(10.97	%)		(0.13	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	343		$	1,055		$	1,532		$	1,778		$	1,847		$	3,082
Ratios to average net assets:
Net investment income (loss)		(1.04	%)		(0.53	%)		(0.90	%)		(1.26	%)		(1.17	%)		(0.84	%)
Total expenses		2.37	%		2.36	%		2.28	%		2.28	%		2.25	%		2.25	%
Portfolio turnover rate		307	%		534	%		1,832	%		1,449	%		417	%		579	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	25.80		$	27.57		$	27.13		$	23.07		$	25.71		$	25.55
Income (loss) from investment operations:
Net investment income (loss)b		—	d		.02			(.09	)		(.12	)		(.07	)		(.01	)
Net gain (loss) on investments (realized and unrealized)		(.71	)		(1.79	)		.53			4.18			(2.57	)		.17
Total from investment operations		(.71	)		(1.77	)		.44			4.06			(2.64	)		.16
Net asset value, end of period	$	25.09		$	25.80		$	27.57		$	27.13		$	23.07		$	25.71
Total Return		(2.75	%)		(6.42	%)		1.62	%		17.60	%		(10.27	%)		0.63	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	33,848		$	9,062		$	7,595		$	19,782		$	18,071		$	11,374
Ratios to average net assets:
Net investment income (loss)		0.03	%		0.06	%		(0.32	%)		(0.47	%)		(0.32	%)		(0.03	%)
Total expenses		1.62	%		1.62	%		1.53	%		1.53	%		1.50	%		1.50	%
Portfolio turnover rate		307	%		534	%		1,832	%		1,449	%		417	%		579	%

a	Unaudited figures for the period ended September 30, 2019. 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 (loss) is less than $0.01 per share.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	March 31, 2004
C-Class	May 10, 2001
H-Class	May 8, 2000

Ten Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	19.2%
Guggenheim Ultra Short Duration Fund — Institutional Class	19.2%
Nestle S.A. ADR	2.2%
Novartis AG ADR	1.4%
Roche Holding AG ADR	1.4%
HSBC Holdings plc ADR	1.1%
Total S.A. ADR	0.9%
BP plc ADR	0.9%
SAP SE ADR	0.8%
Royal Dutch Shell plc — Class A ADR	0.8%
Top Ten Total	47.9%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Country Diversification

Country	% of Long-Term Investments
United Kingdom	31.7%
Switzerland	20.5%
France	19.5%
Germany	12.7%
Netherlands	5.5%
Spain	3.0%
Denmark	2.1%
Other	5.0%
Total Long-Term Investments	100.0%

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 55

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	3.15%	2.24%	(0.54%)	1.24%
A-Class Shares with sales charge‡	(1.76%)	(2.62%)	(1.50%)	0.75%
C-Class Shares	2.73%	1.49%	(1.24%)	0.41%
C-Class Shares with CDSC§	1.73%	0.56%	(1.24%)	0.41%
H-Class Shares	3.12%	2.21%	(0.50%)	1.18%
STOXX Europe 50 Index	3.46%	2.97%	1.57%	3.30%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The STOXX Europe 50 Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

56 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
EUROPE 1.25x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 28.4%
Consumer, Non-cyclical - 12.2%
Nestle S.A. ADR		2,225	$	241,190
Novartis AG ADR		1,790		155,551
Roche Holding AG ADR		4,167		151,887
AstraZeneca plc ADR		1,934		86,198
GlaxoSmithKline plc ADR		1,860		79,385
Sanofi ADR		1,681		77,881
Diageo plc ADR		442		72,276
Novo Nordisk A/S ADR		1,280		66,176
Unilever N.V. — Class Y		1,084		65,073
British American Tobacco plc ADR		1,702		62,804
Anheuser-Busch InBev S.A. ADR		624		59,373
Unilever plc ADR		873		52,467
L’Oreal S.A. ADR		911		50,927
Bayer AG ADR		2,792		49,391
Reckitt Benckiser Group plc ADR1		2,706		42,998
RELX plc ADR		1,500		35,580
Total Consumer, Non-cyclical				1,349,157
Financial - 4.7%
HSBC Holdings plc ADR		3,083		117,986
Allianz SE ADR		3,166		73,451
Banco Santander S.A. ADR		12,344		49,623
Zurich Insurance Group AG ADR		1,108		42,442
BNP Paribas S.A. ADR		1,729		41,963
AXA S.A. ADR		1,546		39,230
Lloyds Banking Group plc ADR		13,400		35,376
Prudential plc ADR		969		35,262
UBS Group AG*		2,706		30,605
ING Groep N.V. ADR		2,921		30,525
Intesa Sanpaolo SpA ADR		2,024		28,710
Total Financial				525,173
Energy - 2.9%
Total S.A. ADR		1,977		102,804
BP plc ADR		2,538		96,419
Royal Dutch Shell plc — Class A ADR		1,602		94,278
Eni SpA ADR		938		28,599
Total Energy				322,100
Industrial - 2.4%
Siemens AG ADR		1,192		63,873
Airbus SE ADR		1,700		55,199
Vinci S.A. ADR		1,646		44,278
Safran S.A. ADR		1,082		42,506
Schneider Electric SE ADR		2,048		35,676
ABB Ltd. ADR		1,351		26,574
Total Industrial				268,106
Basic Materials - 1.9%
Linde plc		408		79,038
BASF SE ADR		2,750		47,932
Air Liquide S.A. ADR		1,596		45,358
Rio Tinto plc ADR		800		41,672
Total Basic Materials				214,000
Technology - 1.6%
SAP SE ADR		805		94,886
ASML Holding N.V. — Class G		310		77,010
Total Technology				171,896
Utilities - 1.0%
Iberdrola S.A. ADR		1,070		44,480
Enel SpA ADR		5,700		42,522
National Grid plc ADR		518		28,039
Total Utilities				115,041
Consumer, Cyclical - 1.0%
LVMH Moet Hennessy Louis Vuitton SE ADR		1,002		79,509
Daimler AG ADR		2,510		30,998
Total Consumer, Cyclical				110,507
Communications - 0.7%
Deutsche Telekom AG ADR		2,411		40,288
Vodafone Group plc ADR		2,013		40,079
Total Communications				80,367
Total Common Stocks
(Cost $2,966,008)				3,156,347
MUTUAL FUNDS† - 38.4%
Guggenheim Strategy Fund II2		85,939		2,133,863
Guggenheim Ultra Short Duration Fund — Institutional Class2		213,694		2,128,397
Total Mutual Funds
(Cost $4,262,197)				4,262,260
	Face Amount
U.S. TREASURY BILLS†† - 6.9%
U.S. Treasury Bills
1.93% due 10/29/193,4	$	768,000		766,884
Total U.S. Treasury Bills
(Cost $766,826)				766,884
REPURCHASE AGREEMENTS††,5 - 25.3%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19		1,747,415		1,747,415
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		561,911		561,911
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		505,719		505,719
Total Repurchase Agreements
(Cost $2,815,045)				2,815,045

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
EUROPE 1.25x STRATEGY FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,6 - 0.3%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%7		32,436	$	32,436
Total Securities Lending Collateral
(Cost $32,436)				32,436
Total Investments - 99.3%
(Cost $10,842,512)			$	11,032,972
Other Assets & Liabilities, net - 0.7%				73,063
Total Net Assets - 100.0%			$	11,106,035

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation (Depreciation)**
Equity Futures Contracts Purchased†
STOXX Europe 50 Index Futures Contracts		303		Dec 2019	$	10,691,883	$	119,972
Currency Futures Contracts Purchased†
Euro FX Futures Contracts		79		Dec 2019		10,823,494		(49,005	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Affiliated issuer.
3	All or a portion of this security is pledged as futures collateral at September 30, 2019.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	Securities lending collateral — See Note 7.
7	Rate indicated is the 7-day yield as of September 30, 2019.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
EUROPE 1.25x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	3,156,347	$	—	$	—	$	3,156,347
Mutual Funds		4,262,260		—		—		4,262,260
U.S. Treasury Bills		—		766,884		—		766,884
Repurchase Agreements		—		2,815,045		—		2,815,045
Securities Lending Collateral		32,436		—		—		32,436
Equity Futures Contracts**		119,972		—		—		119,972
Total Assets	$	7,571,015	$	3,581,929	$	—	$	11,152,944

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts**	$	49,005	$	—	$	—	$	49,005

^** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,602,092	$	2,000,000	$	(1,470,000	)	$	(3,185	)	$	4,956		$	2,133,863		85,939	$	20,070
Guggenheim Ultra Short Duration Fund — Institutional Class		1,659,329		2,000,000		(1,530,000	)		(225	)		(707	)		2,128,397		213,694		20,818
	$	3,261,421	$	4,000,000	$	(3,000,000	)	$	(3,410	)	$	4,249		$	4,262,260			$	40,888

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

EUROPE 1.25x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value - including $30,318 of securities loaned (cost $3,765,270)	$	3,955,667
Investments in affiliated issuers, at value (cost $4,262,197)		4,262,260
Repurchase agreements, at value (cost $2,815,045)		2,815,045
Segregated cash with broker		38,706
Receivables:
Fund shares sold		82,119
Foreign tax reclaims		18,404
Dividends		13,616
Interest		178
Securities lending income		157
Total assets		11,186,152
Liabilities:
Overdraft due to custodian bank		207
Payable for:
Return of securities lending collateral		32,436
Fund shares redeemed		12,428
Management fees		7,827
Variation margin on futures contracts		5,436
Distribution and service fees		2,300
Transfer agent and administrative fees		2,288
Professional fees		2,213
Portfolio accounting fees		915
Due to broker		873
Trustees’ fees*		226
Miscellaneous		12,968
Total liabilities		80,117
Commitments and contingent liabilities (Note 11)		—
Net assets	$	11,106,035
Net assets consist of:
Paid in capital	$	12,305,240
Total distributable earnings (loss)		(1,199,205	)
Net assets	$	11,106,035
A-Class:
Net assets	$	139,168
Capital shares outstanding		1,584
Net asset value per share	$	87.86
Maximum offering price per share (Net asset value divided by 95.25%)	$	92.24
C-Class:
Net assets	$	21,323
Capital shares outstanding		288
Net asset value per share	$	74.10
H-Class:
Net assets	$	10,945,544
Capital shares outstanding		125,492
Net asset value per share	$	87.22

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

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

EUROPE 1.25x STRATEGY FUND

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $4,314)	$	51,302
Dividends from securities of affiliated issuers		40,888
Interest		62,152
Income from securities lending, net		452
Total investment income		154,794
Expenses:
Management fees		52,997
Distribution and service fees:
A-Class		180
C-Class		138
H-Class		14,507
Transfer agent and administrative fees		14,721
Portfolio accounting fees		5,889
Custodian fees		843
Trustees’ fees*		659
Miscellaneous		16,068
Total expenses		106,002
Less:
Expenses waived by Adviser		(1,880	)
Net expenses		104,122
Net investment income		50,672
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(198,358	)
Investments in affiliated issuers		(3,410	)
Futures contracts		(626,703	)
Foreign currency transactions		(1,210	)
Net realized loss		(829,681	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		18,245
Investments in affiliated issuers		4,249
Futures contracts		11,366
Foreign currency translations		(912	)
Net change in unrealized appreciation (depreciation)		32,948
Net realized and unrealized loss		(796,733	)
Net decrease in net assets resulting from operations	$	(746,061	)

^* 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

EUROPE 1.25x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	50,672		$	62,717
Net realized loss on investments		(829,681	)		(586,715	)
Net change in unrealized appreciation (depreciation) on investments		32,948			7,390
Net decrease in net assets resulting from operations		(746,061	)		(516,608	)
Distributions to shareholders:
A-Class		—			(11,761	)
C-Class		—			(5,085	)
H-Class		—			(138,834	)
Total distributions to shareholders		—			(155,680	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,966			113,776
C-Class		352,989			1,056,521
H-Class		229,953,690			190,754,647
Distributions reinvested
A-Class		—			9,063
C-Class		—			5,085
H-Class		—			136,099
Cost of shares redeemed
A-Class		(52,756	)		(311,969	)
C-Class		(356,871	)		(1,209,501	)
H-Class		(255,496,224	)		(156,987,688	)
Net increase (decrease) from capital share transactions		(25,596,206	)		33,566,033
Net increase (decrease) in net assets		(26,342,267	)		32,893,745
Net assets:
Beginning of period		37,448,302			4,554,557
End of period	$	11,106,035		$	37,448,302
Capital share activity:
Shares sold
A-Class		33			1,280
C-Class		4,785			13,646
H-Class		2,658,638			2,140,485
Shares issued from reinvestment of distributions
A-Class		—			121
C-Class		—			80
H-Class		—			1,829
Shares redeemed
A-Class		(606	)		(3,484	)
C-Class		(4,834	)		(15,670	)
H-Class		(2,973,422	)		(1,744,293	)
Net increase (decrease) in shares		(315,406	)		393,994

62 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	85.18		$	94.56		$	84.99		$	78.10		$	93.32		$	104.40
Income (loss) from investment operations:
Net investment income (loss)b		.51			1.70			.82			1.08			(.06	)		.30
Net gain (loss) on investments (realized and unrealized)		2.17	g		(4.78	)		8.99			6.51			(14.44	)		(11.08	)
Total from investment operations		2.68			(3.08	)		9.81			7.59			(14.50	)		(10.78	)
Less distributions from:
Net investment income		—			(6.30	)		(.24	)		(.70	)		(.72	)		(.30	)
Total distributions		—			(6.30	)		(.24	)		(.70	)		(.72	)		(.30	)
Net asset value, end of period	$	87.86		$	85.18		$	94.56		$	84.99		$	78.10		$	93.32
Total Returnc		3.15	%		(2.32	%)		11.53	%		9.83	%		(15.58	%)		(10.33	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	139		$	184		$	401		$	417		$	859		$	1,165
Ratios to average net assets:
Net investment income (loss)		1.16	%		1.89	%		0.88	%		1.35	%		(0.08	%)		0.33	%
Total expensesd		1.79	%		1.76	%		1.71	%		1.72	%		1.67	%		1.72	%
Net expensese		1.74	%		1.76	%		1.71	%		1.72	%		1.67	%		1.72	%
Portfolio turnover rate		857	%		1,411	%		422	%		1,616	%		920	%		608	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	72.13		$	81.77		$	74.07		$	68.62		$	82.63		$	93.15
Income (loss) from investment operations:
Net investment income (loss)b		.17			.96			(.09	)		.35			(.54	)		(.48	)
Net gain (loss) on investments (realized and unrealized)		1.80	g		(4.30	)		8.03			5.80			(12.75	)		(9.74	)
Total from investment operations		1.97			(3.34	)		7.94			6.15			(13.29	)		(10.22	)
Less distributions from:
Net investment income		—			(6.30	)		(.24	)		(.70	)		(.72	)		(.30	)
Total distributions		—			(6.30	)		(.24	)		(.70	)		(.72	)		(.30	)
Net asset value, end of period	$	74.10		$	72.13		$	81.77		$	74.07		$	68.62		$	82.63
Total Returnc		2.73	%		(3.04	%)		10.70	%		9.09	%		(16.14	%)		(10.94	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21		$	24		$	187		$	840		$	440		$	1,023
Ratios to average net assets:
Net investment income (loss)		0.46	%		1.22	%		(0.11	%)		0.50	%		(0.64	%)		(0.50	%)
Total expensesd		2.54	%		2.50	%		2.46	%		2.49	%		2.42	%		2.48	%
Net expensese		2.49	%		2.50	%		2.46	%		2.49	%		2.42	%		2.48	%
Portfolio turnover rate		857	%		1,411	%		422	%		1,616	%		920	%		608	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	84.58		$	93.89		$	84.38		$	77.38		$	92.50		$	103.56
Income (loss) from investment operations:
Net investment income (loss)b		.37			1.26			1.02			.46			.18			.60
Net gain (loss) on investments (realized and unrealized)		2.27	g		(4.27	)		8.73			7.24			(14.58	)		(11.36	)
Total from investment operations		2.64			(3.01	)		9.75			7.70			(14.40	)		(10.76	)
Less distributions from:
Net investment income		—			(6.30	)		(.24	)		(.70	)		(.72	)		(.30	)
Total distributions		—			(6.30	)		(.24	)		(.70	)		(.72	)		(.30	)
Net asset value, end of period	$	87.22		$	84.58		$	93.89		$	84.38		$	77.38		$	92.50
Total Return		3.12	%		(2.28	%)		11.55	%		10.06	%		(15.64	%)		(10.36	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,946		$	37,240		$	3,967		$	6,439		$	4,533		$	9,719
Ratios to average net assets:
Net investment income (loss)		0.86	%		1.42	%		1.09	%		0.59	%		0.19	%		0.62	%
Total expensesd		1.80	%		1.76	%		1.71	%		1.73	%		1.66	%		1.72	%
Net expensese		1.77	%		1.76	%		1.71	%		1.73	%		1.66	%		1.72	%
Portfolio turnover rate		857	%		1,411	%		422	%		1,616	%		920	%		608	%

a	Unaudited figures for the period ended September 30, 2019. 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 expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
f	Reverse share split — Per share amounts for the years presented through March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 28, 2016.
g	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the period because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

JAPAN 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 200% of the fair value of the Nikkei-225 Stock Average Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	February 22, 2008
C-Class	February 22, 2008
H-Class	February 22, 2008

The Fund invests principally in derivative investments such as futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	20.9%
Guggenheim Ultra Short Duration Fund — Institutional Class	15.0%
Total	35.9%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 65

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded) September 30, 2019

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	9.12%	(11.91%)	11.07%	8.49%
A-Class Shares with sales charge‡	3.94%	(16.10%)	9.99%	7.96%
C-Class Shares	8.71%	(12.57%)	10.25%	7.73%
C-Class Shares with CDSC§	7.71%	(13.44%)	10.25%	7.73%
H-Class Shares	9.10%	(11.93%)	11.15%	8.56%
Nikkei-225 Stock Average Index	5.08%	(5.34%)	6.40%	5.94%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Nikkei-225 Stock Average Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

66 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
JAPAN 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 35.9%
Guggenheim Strategy Fund II1		22,247	$	552,382
Guggenheim Ultra Short Duration Fund — Institutional Class1		39,601		394,429
Total Mutual Funds
(Cost $949,261)				946,811
	Face Amount
FEDERAL AGENCY NOTES†† - 7.6%
Federal Farm Credit Bank
2.20% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222	$	100,000		100,295
2.20% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222		100,000		99,776
Total Federal Agency Notes
(Cost $200,000)				200,071
U.S. TREASURY BILLS†† - 5.2%
U.S. Treasury Bills
1.93% due 10/29/193,4		138,000		137,800
Total U.S. Treasury Bills
(Cost $137,789)				137,800
REPURCHASE AGREEMENTS††,5 - 45.5%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/19		745,567		745,567
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/19		239,749		239,749
Barclays Capital issued 09/30/19 at 2.00% due 10/01/19		215,774		215,774
Total Repurchase Agreements
(Cost $1,201,090)				1,201,090
Total Investments - 94.2%
(Cost $2,488,140)			$	2,485,772
Other Assets & Liabilities, net - 5.8%				153,948
Total Net Assets - 100.0%			$	2,639,720

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation (Depreciation)**
Equity Futures Contracts Purchased†
Nikkei-225 (CME) Index Futures Contracts		48		Dec 2019	$	5,250,000	$	51,174
Currency Futures Contracts Purchased†
Japanese Yen Futures Contracts		45		Dec 2019		5,228,719		(10,337	)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at September 30, 2019.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
	CME — Chicago Mercantile Exchange
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
JAPAN 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	946,811	$	—	$	—	$	946,811
Federal Agency Notes		—		200,071		—		200,071
U.S. Treasury Bills		—		137,800		—		137,800
Repurchase Agreements		—		1,201,090		—		1,201,090
Equity Futures Contracts**		51,174		—		—		51,174
Total Assets	$	997,985	$	1,538,961	$	—	$	2,536,946

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts**	$	10,337	$	—	$	—	$	10,337

^** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:    

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	551,937	$	—	$	—		$	—		$	445		$	552,382		22,247	$	7,596
Guggenheim Ultra Short Duration Fund — Institutional Class		544,826		—		(150,000	)		(374	)		(23	)		394,429		39,601		6,366
	$	1,096,763	$	—	$	(150,000	)	$	(374	)	$	422		$	946,811			$	13,962

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

JAPAN 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $337,789)	$	337,871
Investments in affiliated issuers, at value (cost $949,261)		946,811
Repurchase agreements, at value (cost $1,201,090)		1,201,090
Segregated cash with broker		72,645
Receivables:
Fund shares sold		78,346
Variation margin on futures contracts		20,319
Dividends		1,839
Interest		705
Total assets		2,659,626
Liabilities:
Payable for:
Fund shares redeemed		15,683
Management fees		1,130
Distribution and service fees		420
Transfer agent and administrative fees		402
Portfolio accounting fees		161
Trustees’ fees*		40
Miscellaneous		2,070
Total liabilities		19,906
Commitments and contingent liabilities (Note 11)		—
Net assets	$	2,639,720
Net assets consist of:
Paid in capital	$	5,107,724
Total distributable earnings (loss)		(2,468,004	)
Net assets	$	2,639,720
A-Class:
Net assets	$	267,303
Capital shares outstanding		2,042
Net asset value per share	$	130.90
Maximum offering price per share (Net asset value divided by 95.25%)	$	137.43
C-Class:
Net assets	$	32,074
Capital shares outstanding		266
Net asset value per share	$	120.45
H-Class:
Net assets	$	2,340,343
Capital shares outstanding		17,745
Net asset value per share	$	131.89

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	13,962
Interest		13,121
Total investment income		27,083
Expenses:
Management fees		8,012
Distribution and service fees:
A-Class		306
C-Class		164
H-Class		2,324
Transfer agent and administrative fees		2,671
Portfolio accounting fees		1,068
Trustees’ fees*		243
Custodian fees		150
Miscellaneous		2,400
Total expenses		17,338
Less:
Expenses waived by Adviser		(575	)
Net expenses		16,763
Net investment income		10,320
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,866
Investments in affiliated issuers		(374	)
Futures contracts		(78,827	)
Net realized loss		(77,335	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		167
Investments in affiliated issuers		422
Futures contracts		61,745
Net change in unrealized appreciation (depreciation)		62,334
Net realized and unrealized loss		(15,001	)
Net decrease in net assets resulting from operations	$	(4,681	)

^* 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 | 69

JAPAN 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	10,320		$	33,302
Net realized loss on investments		(77,335	)		(316,418	)
Net change in unrealized appreciation (depreciation) on investments		62,334			(411,313	)
Net decrease in net assets resulting from operations		(4,681	)		(694,429	)
Distributions to shareholders:
A-Class		—			(900	)
C-Class		—			(137	)
H-Class		—			(12,057	)
Total distributions to shareholders		—			(13,094	)
Capital share transactions:
Proceeds from sale of shares
A-Class		308,205			172,222
C-Class		218,592			625,943
H-Class		19,642,732			120,323,537
Distributions reinvested
A-Class		—			583
C-Class		—			134
H-Class		—			11,391
Cost of shares redeemed
A-Class		(258,523	)		(326,361	)
C-Class		(217,680	)		(662,832	)
H-Class		(19,188,156	)		(122,716,606	)
Net increase (decrease) from capital share transactions		505,170			(2,571,989	)
Net increase (decrease) in net assets		500,489			(3,279,512	)
Net assets:
Beginning of period		2,139,231			5,418,743
End of period	$	2,639,720		$	2,139,231
Capital share activity:
Shares sold
A-Class		2,497			1,347
C-Class		1,891			5,185
H-Class		157,381			907,364
Shares issued from reinvestment of distributions
A-Class		—			5
C-Class		—			1
H-Class		—			95
Shares redeemed
A-Class		(2,218	)		(2,550	)
C-Class		(1,894	)		(5,457	)
H-Class		(155,336	)		(927,706	)
Net increase (decrease) in shares		2,321			(21,716	)

70 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	119.96		$	136.57		$	102.24		$	78.81		$	93.15		$	77.23
Income (loss) from investment operations:
Net investment income (loss)b		.64			1.22			(.03	)		(.74	)		(1.12	)		(1.00	)
Net gain (loss) on investments (realized and unrealized)		10.30	g		(17.32	)		38.80	g		24.17			(13.22	)		16.92
Total from investment operations		10.94			(16.10	)		38.77			23.43			(14.34	)		15.92
Less distributions from:
Net investment income		—			(.51	)		—			—			—			—
Net realized gains		—			—			(4.44	)		—			—			—
Total distributions		—			(.51	)		(4.44	)		—			—			—
Net asset value, end of period	$	130.90		$	119.96		$	136.57		$	102.24		$	78.81		$	93.15
Total Returnc		9.12	%		(11.79	%)		37.94	%		29.73	%		(15.41	%)		20.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	267		$	211		$	404		$	389		$	351		$	447
Ratios to average net assets:
Net investment income (loss)		1.03	%		0.93	%		(0.02	%)		(0.80	%)		(1.22	%)		(1.27	%)
Total expensesd		1.61	%		1.58	%		1.51	%		1.52	%		1.51	%		1.54	%
Net expensese		1.55	%		1.56	%		1.51	%		1.52	%		1.51	%		1.54	%
Portfolio turnover rate		—			—			17	%		1,225	%		543	%		405	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	110.80		$	127.14		$	96.17		$	74.63		$	88.92		$	73.98
Income (loss) from investment operations:
Net investment income (loss)b		.17			.19			(.80	)		(1.33	)		(1.68	)		(1.56	)
Net gain (loss) on investments (realized and unrealized)		9.48	g		(16.02	)		36.21	g		22.87			(12.61	)		16.50
Total from investment operations		9.65			(15.83	)		35.41			21.54			(14.29	)		14.94
Less distributions from:
Net investment income		—			(.51	)		—			—			—			—
Net realized gains		—			—			(4.44	)		—			—			—
Total distributions		—			(.51	)		(4.44	)		—			—			—
Net asset value, end of period	$	120.45		$	110.80		$	127.14		$	96.17		$	74.63		$	88.92
Total Returnc		8.71	%		(12.43	%)		36.90	%		28.74	%		(16.06	%)		20.23	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	32		$	30		$	69		$	52		$	56		$	317
Ratios to average net assets:
Net investment income (loss)		0.30	%		0.16	%		(0.68	%)		(1.53	%)		(1.91	%)		(2.04	%)
Total expensesd		2.36	%		2.33	%		2.26	%		2.27	%		2.24	%		2.30	%
Net expensese		2.30	%		2.31	%		2.26	%		2.27	%		2.24	%		2.30	%
Portfolio turnover rate		—			—			17	%		1,225	%		543	%		405	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	120.89		$	137.58		$	102.97		$	79.15		$	93.52		$	77.52
Income (loss) from investment operations:
Net investment income (loss)b		.61			1.09			(.12	)		(.86	)		(1.08	)		(1.04	)
Net gain (loss) on investments (realized and unrealized)		10.39	g		(17.27	)		39.17	g		24.68			(13.29	)		17.04
Total from investment operations		11.00			(16.18	)		39.05			23.82			(14.37	)		16.00
Less distributions from:
Net investment income		—			(.51	)		—			—			—			—
Net realized gains		—			—			(4.44	)		—			—			—
Total distributions		—			(.51	)		(4.44	)		—			—			—
Net asset value, end of period	$	131.89		$	120.89		$	137.58		$	102.97		$	79.15		$	93.52
Total Return		9.10	%		(11.76	%)		37.95	%		30.08	%		(15.36	%)		20.64	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,340		$	1,898		$	4,946		$	3,145		$	2,413		$	16,862
Ratios to average net assets:
Net investment income (loss)		0.97	%		0.83	%		(0.10	%)		(0.95	%)		(1.17	%)		(1.28	%)
Total expensesd		1.61	%		1.58	%		1.50	%		1.52	%		1.49	%		1.54	%
Net expensese		1.56	%		1.57	%		1.50	%		1.52	%		1.49	%		1.54	%
Portfolio turnover rate		—			—			17	%		1,225	%		543	%		405	%

a	Unaudited figures for the period ended September 30, 2019. 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 expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
f	Reverse share split — Per share amounts for the years presented through March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 4, 2016.
g	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the period because of the sales and repurchases of Fund shares in relation to fluctuating market value of the investments of the Fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	17.5%
Guggenheim Ultra Short Duration Fund — Institutional Class	15.2%
Total	32.7%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 73

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	6.71%	13.83%	6.05%	2.51%
A-Class Shares with sales charge‡	1.63%	8.43%	5.02%	2.00%
C-Class Shares	6.33%	12.98%	5.26%	1.73%
C-Class Shares with CDSC§	5.33%	11.98%	5.26%	1.73%
H-Class Shares	6.74%	13.86%	6.06%	2.51%
U.S. Dollar Index	2.16%	4.47%	2.95%	2.63%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

74 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
STRENGTHENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 32.7%
Guggenheim Strategy Fund II1		60,102	$	1,492,338
Guggenheim Ultra Short Duration Fund — Institutional Class1		129,747		1,292,282
Total Mutual Funds
(Cost $2,785,875)				2,784,620
	Face Amount
FEDERAL AGENCY NOTES†† - 13.8%
Federal Farm Credit Bank
2.20% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222	$	500,000		501,475
2.15% (U.S. Prime Rate - 2.85%, Rate Floor: 0.00%) due 08/30/222		500,000		499,716
2.19% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		180,000		180,185
Total Federal Agency Notes
(Cost $1,180,000)				1,181,376
U.S. TREASURY BILLS†† - 3.1%
U.S. Treasury Bills
1.93% due 10/29/193,4		263,000		262,618
Total U.S. Treasury Bills
(Cost $262,598)				262,618
REPURCHASE AGREEMENTS††,5 - 41.7%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/196		2,206,554		2,206,554
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/196		709,554		709,554
Barclays Capital issued 09/30/19 at 2.00% due 10/01/196		638,598		638,598
Total Repurchase Agreements
(Cost $3,554,706)				3,554,706
Total Investments - 91.3%
(Cost $7,783,179)			$	7,783,320
Other Assets & Liabilities, net - 8.7%				742,102
Total Net Assets - 100.0%			$	8,525,422

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Appreciation**
Currency Futures Contracts Purchased†
U.S. Dollar Index Futures Contracts		160		Dec 2019	$	15,848,000	$	127,733

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay (Receive)

Payment Frequency

Maturity Date

Units

Notional Amount

Value and Unrealized Appreciation

OTC Currency Index Swap Agreements††

Goldman Sachs International

U.S. Dollar Index

N/A

At Maturity

12/18/19

11,784

$

1,166,298

$

14,132

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at September 30, 2019.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as currency index swap collateral at September 30, 2019.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
STRENGTHENING DOLLAR 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	2,784,620	$	—	$	—	$	2,784,620
Federal Agency Notes		—		1,181,376		—		1,181,376
U.S. Treasury Bills		—		262,618		—		262,618
Repurchase Agreements		—		3,554,706		—		3,554,706
Currency Futures Contracts**		127,733		—		—		127,733
Currency Index Swap Agreements**		—		14,132		—		14,132
Total Assets	$	2,912,353	$	5,012,832	$	—	$	7,925,185

^** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	1,491,136	$	—	$	—		$	—		$	1,202		$	1,492,338		60,102	$	20,522
Guggenheim Ultra Short Duration Fund — Institutional Class		1,493,579		—		(200,000	)		(953	)		(344	)		1,292,282		129,747		19,080
	$	2,984,715	$	—	$	(200,000	)	$	(953	)	$	858		$	2,784,620			$	39,602

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $1,442,598)	$	1,443,994
Investments in affiliated issuers, at value (cost $2,785,875)		2,784,620
Repurchase agreements, at value (cost $3,554,706)		3,554,706
Unrealized appreciation on OTC swap agreements		14,132
Receivables:
Fund shares sold		796,558
Variation margin on futures contracts		42,244
Swap settlement		6,988
Dividends		5,453
Interest		2,292
Total assets		8,650,987
Liabilities:
Payable for:
Fund shares redeemed		92,800
Licensing fees		14,557
Management fees		5,749
Distribution and service fees		1,784
Transfer agent and administrative fees		1,666
Portfolio accounting fees		666
Trustees’ fees*		157
Miscellaneous		8,186
Total liabilities		125,565
Commitments and contingent liabilities (Note 11)		—
Net assets	$	8,525,422
Net assets consist of:
Paid in capital	$	26,716,095
Total distributable earnings (loss)		(18,190,673	)
Net assets	$	8,525,422
A-Class:
Net assets	$	2,787,976
Capital shares outstanding		49,801
Net asset value per share	$	55.98
Maximum offering price per share (Net asset value divided by 95.25%)	$	58.77
C-Class:
Net assets	$	209,487
Capital shares outstanding		4,200
Net asset value per share	$	49.88
H-Class:
Net assets	$	5,527,959
Capital shares outstanding		99,116
Net asset value per share	$	55.77

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	39,602
Interest		65,911
Total investment income		105,513
Expenses:
Management fees		37,728
Distribution and service fees:
A-Class		2,308
C-Class		1,434
H-Class		7,813
Transfer agent and administrative fees		10,480
Licensing fees		12,216
Portfolio accounting fees		4,192
Trustees’ fees*		1,175
Custodian fees		596
Miscellaneous		9,149
Total expenses		87,091
Less:
Expenses waived by Adviser		(1,723	)
Net expenses		85,368
Net investment income		20,145
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(49	)
Investments in affiliated issuers		(953	)
Swap agreements		58,607
Futures contracts		274,227
Net realized gain		331,832
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		2,061
Investments in affiliated issuers		858
Swap agreements		5,353
Futures contracts		16,878
Net change in unrealized appreciation (depreciation)		25,150
Net realized and unrealized gain		356,982
Net increase in net assets resulting from operations	$	377,127

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

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	20,145		$	47,969
Net realized gain on investments		331,832			2,695,502
Net change in unrealized appreciation (depreciation) on investments		25,150			86,614
Net increase in net assets resulting from operations		377,127			2,830,085
Capital share transactions:
Proceeds from sale of shares
A-Class		1,313,751			6,926,805
C-Class		114,000			3,989,197
H-Class		31,222,721			109,304,977
Cost of shares redeemed
A-Class		(430,863	)		(7,246,656	)
C-Class		(711,197	)		(4,150,682	)
H-Class		(30,949,959	)		(112,677,372	)
Net increase (decrease) from capital share transactions		558,453			(3,853,731	)
Net increase (decrease) in net assets		935,580			(1,023,646	)
Net assets:
Beginning of period		7,589,842			8,613,488
End of period	$	8,525,422		$	7,589,842
Capital share activity:
Shares sold
A-Class		23,933			147,999
C-Class		2,350			92,512
H-Class		584,906			2,248,108
Shares redeemed
A-Class		(8,111	)		(148,943	)
C-Class		(15,011	)		(95,966	)
H-Class		(581,800	)		(2,297,724	)
Net increase (decrease) in shares		6,267			(54,014	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	52.46		$	43.45		$	53.23		$	47.68		$	55.75		$	38.36
Income (loss) from investment operations:
Net investment income (loss)b		.14			.19			(.16	)		(.55	)		(.58	)		(.56	)
Net gain (loss) on investments (realized and unrealized)		3.38			8.82			(9.62	)		6.10			(5.32	)		17.95
Total from investment operations		3.52			9.01			(9.78	)		5.55			(5.90	)		17.39
Less distributions from:
Net realized gains		—			—			—			—			(2.17	)		—
Total distributions		—			—			—			—			(2.17	)		—
Net asset value, end of period	$	55.98		$	52.46		$	43.45		$	53.23		$	47.68		$	55.75
Total Returnc		6.71	%		20.74	%		(18.37	%)		11.64	%		(11.01	%)		45.33	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,788		$	1,782		$	1,517		$	2,245		$	1,900		$	15,765
Ratios to average net assets:
Net investment income (loss)		0.51	%		0.40	%		(0.34	%)		(1.07	%)		(1.10	%)		(1.19	%)
Total expensesd		2.06	%		1.83	%		1.72	%		1.73	%		1.69	%		1.68	%
Net expensese		2.01	%		1.82	%		1.72	%		1.73	%		1.69	%		1.68	%
Portfolio turnover rate		—			9	%		—			142	%		376	%		299	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	46.91		$	39.14		$	48.32		$	43.60		$	51.55		$	35.74
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.15	)		(.48	)		(.82	)		(.85	)		(.81	)
Net gain (loss) on investments (realized and unrealized)		3.02			7.92			(8.70	)		5.54			(4.93	)		16.62
Total from investment operations		2.97			7.77			(9.18	)		4.72			(5.78	)		15.81
Less distributions from:
Net realized gains		—			—			—			—			(2.17	)		—
Total distributions		—			—			—			—			(2.17	)		—
Net asset value, end of period	$	49.88		$	46.91		$	39.14		$	48.32		$	43.60		$	51.55
Total Returnc		6.33	%		19.85	%		(18.98	%)		10.80	%		(11.69	%)		44.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	209		$	791		$	795		$	1,309		$	1,938		$	3,836
Ratios to average net assets:
Net investment income (loss)		(0.21	%)		(0.33	%)		(1.14	%)		(1.80	%)		(1.75	%)		(1.96	%)
Total expensesd		2.79	%		2.59	%		2.47	%		2.48	%		2.45	%		2.44	%
Net expensese		2.75	%		2.58	%		2.47	%		2.48	%		2.45	%		2.44	%
Portfolio turnover rate		—			9	%		—			142	%		376	%		299	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	52.25		$	43.27		$	53.03		$	47.49		$	55.53		$	38.21
Income (loss) from investment operations:
Net investment income (loss)b		.13			.18			(.17	)		(.56	)		(.59	)		(.56	)
Net gain (loss) on investments (realized and unrealized)		3.39			8.80			(9.59	)		6.10			(5.28	)		17.88
Total from investment operations		3.52			8.98			(9.76	)		5.54			(5.87	)		17.32
Less distributions from:
Net realized gains		—			—			—			—			(2.17	)		—
Total distributions		—			—			—			—			(2.17	)		—
Net asset value, end of period	$	55.77		$	52.25		$	43.27		$	53.03		$	47.49		$	55.53
Total Return		6.74	%		20.75	%		(18.39	%)		11.64	%		(11.00	%)		45.33	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,528		$	5,017		$	6,301		$	7,506		$	10,608		$	158,098
Ratios to average net assets:
Net investment income (loss)		0.50	%		0.36	%		(0.36	%)		(1.11	%)		(1.12	%)		(1.19	%)
Total expensesd		2.05	%		1.83	%		1.72	%		1.73	%		1.70	%		1.68	%
Net expensese		2.01	%		1.82	%		1.72	%		1.73	%		1.70	%		1.68	%
Portfolio turnover rate		—			9	%		—			142	%		376	%		299	%

a	Unaudited figures for the period ended September 30, 2019. 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 expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

Largest Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	14.2%
Guggenheim Ultra Short Duration Fund — Institutional Class	8.6%
Total	22.8%
“Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 81

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	(6.35%)	(12.54%)	(8.50%)	(6.81%)
A-Class Shares with sales charge‡	(10.80%)	(16.69%)	(9.38%)	(7.26%)
C-Class Shares	(6.73%)	(13.20%)	(9.20%)	(7.52%)
C-Class Shares with CDSC§	(7.66%)	(14.07%)	(9.20%)	(7.52%)
H-Class Shares	(6.36%)	(12.57%)	(8.50%)	(6.82%)
U.S. Dollar Index	2.16%	4.47%	2.95%	2.63%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

82 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
WEAKENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 22.8%
Guggenheim Strategy Fund II1		15,033	$	373,275
Guggenheim Ultra Short Duration Fund — Institutional Class1		22,531		224,409
Total Mutual Funds
(Cost $597,718)				597,684
	Face Amount
FEDERAL AGENCY NOTES†† - 34.7%
Federal Farm Credit Bank
2.20% (3 Month U.S. Treasury Bill Rate + 0.29%, Rate Floor: 0.00%) due 04/11/222	$	400,000		399,104
2.20% (U.S. Prime Rate - 2.80%, Rate Floor: 0.00%) due 03/14/222		250,000		250,738
2.19% (U.S. Prime Rate - 2.81%, Rate Floor: 0.00%) due 05/20/222		60,000		60,061
Federal Home Loan Bank
2.01% (3 Month USD LIBOR - 0.14%, Rate Floor: 0.00%) due 12/18/202		200,000		199,714
Total Federal Agency Notes
(Cost $909,872)				909,617
U.S. TREASURY BILLS†† - 2.6%
U.S. Treasury Bills
1.93% due 10/29/193,4		67,000		66,903
Total U.S. Treasury Bills
(Cost $66,897)				66,903
REPURCHASE AGREEMENTS††,5 - 39.5%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/196		641,380		641,380
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/196		206,247		206,247
Barclays Capital issued 09/30/19 at 2.00% due 10/01/196		185,622		185,622
Total Repurchase Agreements
(Cost $1,033,249)				1,033,249
Total Investments - 99.6%
(Cost $2,607,736)			$	2,607,453
Other Assets & Liabilities, net - 0.4%				9,706
Total Net Assets - 100.0%			$	2,617,159

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Currency Futures Contracts Sold Short†
U.S. Dollar Index Futures Contracts		42		Dec 2019	$	4,160,100	$	(36,482	)

Total Return Swap Agreements

Counterparty

Index

Financing Rate Pay (Receive)

Payment Frequency

Maturity Date

Units

Notional Amount

Value and Unrealized Depreciation

OTC Currency Index Swap Agreements Sold Short††

Goldman Sachs International

U.S. Dollar Index

N/A

At Maturity

12/18/19

10,232

$

1,012,689

$

(11,689

)

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
3	All or a portion of this security is pledged as futures collateral at September 30, 2019.
4	Rate indicated is the effective yield at the time of purchase.
5	Repurchase Agreements — See Note 6.
6	All or a portion of this security is pledged as currency index swap collateral at September 30, 2019.
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
WEAKENING DOLLAR 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Mutual Funds	$	597,684	$	—	$	—	$	597,684
Federal Agency Notes		—		909,617		—		909,617
U.S. Treasury Bills		—		66,903		—		66,903
Repurchase Agreements		—		1,033,249		—		1,033,249
Total Assets	$	597,684	$	2,009,769	$	—	$	2,607,453

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Currency Futures Contracts**	$	36,482	$	—	$	—	$	36,482
Currency Index Swap Agreements**		—		11,689		—		11,689
Total Liabilities	$	36,482	$	11,689	$	—	$	48,171

^** This derivative is reported as unrealized appreciation/depreciation at period end.

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions			Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	372,974	$	—	$	—		$	—		$	301		$	373,275		15,033	$	5,133
Guggenheim Ultra Short Duration Fund — Institutional Class		274,635		—		(50,000	)		(210	)		(16	)		224,409		22,531		3,297
	$	647,609	$	—	$	(50,000	)	$	(210	)	$	285		$	597,684			$	8,430

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

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value (cost $976,769)	$	976,520
Investments in affiliated issuers, at value (cost $597,718)		597,684
Repurchase agreements, at value (cost $1,033,249)		1,033,249
Segregated cash with broker		2,735
Receivables:
Fund shares sold		40,150
Interest		2,733
Dividends		1,153
Total assets		2,654,224
Liabilities:
Unrealized depreciation on OTC swap agreements		11,689
Payable for:
Variation margin on futures contracts		12,138
Licensing fees		4,678
Swap settlement		2,695
Management fees		1,874
Distribution and service fees		547
Transfer agent and administrative fees		533
Portfolio accounting fees		213
Trustees’ fees*		50
Fund shares redeemed		11
Miscellaneous		2,637
Total liabilities		37,065
Commitments and contingent liabilities (Note 11)		—
Net assets	$	2,617,159
Net assets consist of:
Paid in capital	$	12,811,427
Total distributable earnings (loss)		(10,194,268	)
Net assets	$	2,617,159
A-Class:
Net assets	$	261,994
Capital shares outstanding		4,389
Net asset value per share	$	59.69
Maximum offering price per share (Net asset value divided by 95.25%)	$	62.67
C-Class:
Net assets	$	24,344
Capital shares outstanding		460
Net asset value per share	$	52.92
H-Class:
Net assets	$	2,330,821
Capital shares outstanding		39,097
Net asset value per share	$	59.62

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends from securities of affiliated issuers	$	8,430
Interest		25,798
Total investment income		34,228
Expenses:
Management fees		12,398
Distribution and service fees:
A-Class		615
C-Class		132
H-Class		2,795
Transfer agent and administrative fees		3,444
Licensing fees		4,042
Portfolio accounting fees		1,378
Trustees’ fees*		354
Custodian fees		195
Miscellaneous		3,051
Total expenses		28,404
Less:
Expenses waived by Adviser		(299	)
Net expenses		28,105
Net investment income		6,123
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(210	)
Swap agreements		(27,946	)
Futures contracts		(153,568	)
Net realized loss		(181,724	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(36	)
Investments in affiliated issuers		285
Swap agreements		(10,079	)
Futures contracts		(6,718	)
Net change in unrealized appreciation (depreciation)		(16,548	)
Net realized and unrealized loss		(198,272	)
Net decrease in net assets resulting from operations	$	(192,149	)

^* 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 | 85

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	6,123		$	14,570
Net realized loss on investments		(181,724	)		(946,169	)
Net change in unrealized appreciation (depreciation) on investments		(16,548	)		(32,206	)
Net decrease in net assets resulting from operations		(192,149	)		(963,805	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,799,809			3,191,819
C-Class		—			2,409,633
H-Class		14,598,506			36,403,192
Cost of shares redeemed
A-Class		(2,810,262	)		(6,106,598	)
C-Class		(9,498	)		(2,691,925	)
H-Class		(13,779,436	)		(37,192,749	)
Net increase (decrease) from capital share transactions		799,119			(3,986,628	)
Net increase (decrease) in net assets		606,970			(4,950,433	)
Net assets:
Beginning of period		2,010,189			6,960,622
End of period	$	2,617,159		$	2,010,189
Capital share activity:
Shares sold
A-Class		44,227			45,113
C-Class		—			37,258
H-Class		232,206			534,605
Shares redeemed
A-Class		(44,487	)		(83,033	)
C-Class		(167	)		(42,196	)
H-Class		(219,466	)		(550,347	)
Net increase (decrease) in shares		12,313			(58,600	)

86 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	63.74		$	77.67		$	64.99		$	75.31		$	70.69		$	107.17
Income (loss) from investment operations:
Net investment income (loss)b		.15			.23			(.35	)		(.80	)		(.84	)		(1.20	)
Net gain (loss) on investments (realized and unrealized)		(4.20	)		(14.16	)		13.03			(9.52	)		5.46			(35.28	)
Total from investment operations		(4.05	)		(13.93	)		12.68			(10.32	)		4.62			(36.48	)
Net asset value, end of period	$	59.69		$	63.74		$	77.67		$	64.99		$	75.31		$	70.69
Total Returnc		(6.35	%)		(17.93	%)		19.51	%		(13.69	%)		6.54	%		(34.04	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	262		$	296		$	3,306		$	324		$	1,314		$	508
Ratios to average net assets:
Net investment income (loss)		0.47	%		0.32	%		(0.48	%)		(1.13	%)		(1.13	%)		(1.23	%)
Total expensesd		2.05	%		1.80	%		1.72	%		1.72	%		1.70	%		1.70	%
Net expensese		2.03	%		1.80	%		1.72	%		1.72	%		1.70	%		1.70	%
Portfolio turnover rate		—			—			28	%		77	%		699	%		219	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	56.74		$	69.66		$	58.72		$	68.57		$	64.88		$	99.08
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.27	)		(.80	)		(1.19	)		(1.20	)		(1.74	)
Net gain (loss) on investments (realized and unrealized)		(3.75	)		(12.65	)		11.74			(8.66	)		4.89			(32.46	)
Total from investment operations		(3.82	)		(12.92	)		10.94			(9.85	)		3.69			(34.20	)
Net asset value, end of period	$	52.92		$	56.74		$	69.66		$	58.72		$	68.57		$	64.88
Total Returnc		(6.73	%)		(18.55	%)		18.65	%		(14.39	%)		5.74	%		(34.52	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24		$	36		$	388		$	695		$	536		$	163
Ratios to average net assets:
Net investment income (loss)		(0.27	%)		(0.42	%)		(1.23	%)		(1.88	%)		(1.81	%)		(1.94	%)
Total expensesd		2.80	%		2.53	%		2.47	%		2.47	%		2.45	%		2.46	%
Net expensese		2.78	%		2.53	%		2.47	%		2.47	%		2.45	%		2.46	%
Portfolio turnover rate		—			—			28	%		77	%		699	%		219	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017f			Year Ended March 31, 2016f			Year Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	63.67		$	77.60		$	64.92		$	75.23		$	70.59		$	106.99
Income (loss) from investment operations:
Net investment income (loss)b		.14			.28			(.36	)		(.85	)		(.78	)		(1.14	)
Net gain (loss) on investments (realized and unrealized)		(4.19	)		(14.21	)		13.04			(9.46	)		5.42			(35.26	)
Total from investment operations		(4.05	)		(13.93	)		12.68			(10.31	)		4.64			(36.40	)
Net asset value, end of period	$	59.62		$	63.67		$	77.60		$	64.92		$	75.23		$	70.59
Total Return		(6.36	%)		(17.95	%)		19.55	%		(13.73	%)		6.54	%		(33.99	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,331		$	1,678		$	3,267		$	5,068		$	3,645		$	3,651
Ratios to average net assets:
Net investment income (loss)		0.45	%		0.41	%		(0.49	%)		(1.19	%)		(1.04	%)		(1.20	%)
Total expensesd		2.06	%		1.83	%		1.72	%		1.71	%		1.70	%		1.70	%
Net expensese		2.03	%		1.83	%		1.72	%		1.71	%		1.70	%		1.70	%
Portfolio turnover rate		—			—			28	%		77	%		699	%		219	%

a	Unaudited figures for the period ended September 30, 2019. 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 expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
f	Reverse share split — Per share amounts for the years presented through March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 28, 2016.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (“1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate Fund (each, a “Fund”). The Trust 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. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2019, the Trust consisted of fifty-two funds.

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

Fund Name	Investment Company Type
S&P 500® Pure Growth Fund	Non-diversified
S&P 500® Pure Value Fund	Non-diversified
S&P MidCap 400® Pure Growth Fund	Non-diversified
S&P MidCap 400® Pure Value Fund	Non-diversified
S&P SmallCap 600® Pure Growth Fund	Non-diversified
S&P SmallCap 600® Pure Value Fund	Non-diversified
Europe 1.25x Strategy Fund	Non-diversified
Japan 2x Strategy Fund	Non-diversified
Strengthening Dollar 2x Strategy Fund	Non-diversified
Weakening Dollar 2x Strategy Fund	Non-diversified

At September 30, 2019, 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.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

Significant Accounting Policies

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

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

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

(a) Valuation of Investments

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

Valuations of the Funds’ securities 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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 89

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used and valuations provided by the pricing services.

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

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

Open-end investment companies are valued at their NAV as of the close of business, on the valuation date.

U.S. Government securities are valued by 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. Money market funds are valued at their NAV.

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

The value of futures contracts is accounted for using the unrealized appreciation or depreciation on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The value of currency index swap agreements entered into by a Fund is accounted for using the unrealized appreciation or depreciation on the agreements that is determined by marking the agreements to the broker quote.

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

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

(b) U.S. Government and Agency Obligations

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

(c) Futures Contracts

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

90 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

(d) Swap Agreements

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

(e) Currency Translations

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

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

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

(f) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of September 30, 2019, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

(g) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts (“REITs”) is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(h) Distributions

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

(i) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust based on the respective net assets of each Fund included in the Trust.

(j) Cash

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 1.90% at September 30, 2019.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 91

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

(k) Indemnifications

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

Note 2 – Derivatives

As part of their investment strategy, the Funds utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of 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 are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more other assets, such as securities, currencies, commodities or indices. Derivative instruments may be used to increase investment flexibility (including to maintain cash reserves while maintaining exposure to certain other assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. Derivative instruments may also be used to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. U.S. GAAP requires disclosures to enable investors to better understand how and why a Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund’s financial position and results of operations.

The Funds may utilize derivatives for the following purposes:

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

Futures Contracts

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statements of Assets and Liabilities; securities held as collateral are noted on the Schedules of Investments.

92 | 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 Amount
Fund	Use	Long		Short
Europe 1.25x Strategy Fund	Index Exposure, Leverage, Liquidity	$	24,623,347	$	—
Japan 2x Strategy Fund	Index Exposure, Leverage, Liquidity		8,856,309		—
Strengthening Dollar 2x Strategy Fund	Index Exposure, Leverage, Liquidity		12,757,355		—
Weakening Dollar 2x Strategy Fund	Index Exposure, Leverage, Liquidity		—		3,994,250

Swap Agreements

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing over-the-counter (“OTC”) swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. Upon entering into certain centrally-cleared swap transactions, the Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin payments or receipts are made or received by the Fund, depending on fluctuations in the fair value of the reference entity. For a fund utilizing centrally cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Currency swaps enable the Funds to gain exposure to currencies in a market without actually possessing a given currency, or to hedge a position. Currency swaps involve the exchange of the principal and interest in one currency for the principal and interest in another currency. As in other types of OTC swaps, the Funds may be at risk due to the counterparty’s inability to perform.

The following table represents the Funds’ use and volume of currency swaps on a quarterly basis:

		Average Notional Amount
Fund	Use	Long		Short
Strengthening Dollar 2x Strategy Fund	Index Exposure, Leverage, Liquidity	$	1,539,682	$	—
Weakening Dollar 2x Strategy Fund	Index Exposure, Leverage, Liquidity		—		907,322

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, 2019:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Currency contracts	Variation margin on futures contracts	Variation margin on futures contracts
	Unrealized appreciation on OTC swap agreements	Unrealized depreciation on OTC swap agreements

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at September 30, 2019:

Asset Derivative Investments Value
Fund	Futures Equity Risk*		Futures Currency Risk*		Swaps Currency Risk		Total Value at September 30, 2019
Europe 1.25x Strategy Fund	$	119,972	$	—	$	—	$	119,972
Japan 2x Strategy Fund		51,174		—		—		51,174
Strengthening Dollar 2x Strategy Fund		—		127,733		14,132		141,865

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 93

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Liability Derivative Investments Value
Fund	Futures Equity Risk*		Futures Currency Risk*		Swaps Currency Risk		Total Value at September 30, 2019
Europe 1.25x Strategy Fund	$	—	$	49,005	$	—	$	49,005
Japan 2x Strategy Fund		—		10,337		—		10,337
Weakening Dollar 2x Strategy Fund		—		36,482		11,689		48,171

^* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. Variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the period ended September 30, 2019:

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, 2019:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk		Futures Currency Risk			Swaps Currency Risk			Total
Europe 1.25x Strategy Fund	$	(6,857	)	$	—	$	(619,846	)	$	—		$	(626,703	)
Japan 2x Strategy Fund		(313,952	)		—		235,125			—			(78,827	)
Strengthening Dollar 2x Strategy Fund		—			—		274,227			58,607			332,834
Weakening Dollar 2x Strategy Fund		—			—		(153,568	)		(27,946	)		(181,514	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk		Swaps Equity Risk		Futures Currency Risk			Swaps Currency Risk			Total
Europe 1.25x Strategy Fund	$	548	$	—	$	10,818		$	—		$	11,366
Japan 2x Strategy Fund		81,505		—		(19,760	)		—			61,745
Strengthening Dollar 2x Strategy Fund		—		—		16,878			5,353			22,231
Weakening Dollar 2x Strategy Fund		—		—		(6,718	)		(10,079	)		(16,797	)

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

94 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 3 – Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received		Net Amount
Strengthening Dollar 2x Strategy Fund	Swap currency contracts	$	14,132	$	—	$	14,132	$	—	$	—	$	14,132

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 95

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
Weakening Dollar 2x Strategy Fund	Swap currency contracts	$	11,689	$	—	$	11,689	$	(11,689	)	$	—	$	—

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of September 30, 2019.

Fund	Counterparty	Asset Type		Cash Pledged		Cash Received
Europe 1.25x Strategy Fund	Goldman Sachs Group		Futures contracts	$	38,706	$	—
Japan 2x Strategy Fund	Goldman Sachs Group		Futures contracts		72,645		—
Weakening Dollar 2x Strategy Fund	Goldman Sachs Group		Futures contracts		2,735		—

Note 4 – Fair Value Measurement

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

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

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

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

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

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

96 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 5 – Investment Advisory Agreement and Other Agreements

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

Fund		Management Fees (as a % of Net Assets)
S&P 500® Pure Growth Fund	0.75%
S&P 500® Pure Value Fund	0.75%
S&P MidCap 400® Pure Growth Fund	0.75%
S&P MidCap 400® Pure Value Fund	0.75%
S&P SmallCap 600® Pure Growth Fund	0.75%
S&P SmallCap 600® Pure Value Fund	0.75%
Europe 1.25x Strategy Fund	0.90%
Japan 2x Strategy Fund	0.75%
Strengthening Dollar 2x Strategy Fund	0.90%
Weakening Dollar 2x Strategy Fund	0.90%

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

Fund Assets Under Management	Fund Asset-Based Breakpoint Reductions
$500 million – $1 billion	0.025%
> $1 billion – $2 billion	0.05%
> $2 billion	0.075%

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, 2019, GFD retained sales charges of $42,539 relating to sales of A-Class shares of the Trust.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 97

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

If a Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund’s adviser has agreed to waive fees at the investing fund level to the extent necessary to offset the proportionate share of any management fee paid by each Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap, if any, in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the period ended September 30, 2019, the following Funds waived fees related to investments in affiliated funds:

Fund	Amount Waived
Europe 1.25x Strategy Fund	$	1,880
Japan 2x Strategy Fund		575
Strengthening Dollar 2x Strategy Fund		1,723
Weakening Dollar 2x Strategy Fund		299

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

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS is responsible for maintaining the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets and out of pocket expenses.

Note 6 – Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2019, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
JPMorgan Chase & Co.					U.S. Treasury Note
2.35%					1.75%
Due 10/01/19	$	194,737,402	$	194,750,114	06/30/22	$	196,919,400	$	198,632,205
Bank of America Merrill Lynch					U.S. TIP Note
2.28%					1.25%
Due 10/01/19		62,621,053		62,625,019	07/15/20		63,404,852		63,873,490
Barclays Capital					U.S. Treasury Bond
2.00%					3.38%
Due 10/01/19		56,358,948		56,362,079	05/15/44		45,816,100		57,486,205

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

98 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

At September 30, 2019, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested			Cash Collateral Uninvested		Total Collateral
S&P MidCap 400® Pure Growth Fund	$	1,837,221	$	(1,835,940	)	$	1,281	$	1,835,940	*	$	—	$	1,835,940
S&P MidCap 400® Pure Value Fund		150,037		(146,673	)		3,364		146,673	*		—		146,673
S&P SmallCap 600® Pure Growth Fund		213,311		(213,311	)		—		221,319			—		221,319
S&P SmallCap 600® Pure Value Fund		650,596		(650,596	)		—		695,208			—		695,208
Europe 1.25x Strategy Fund		30,318		(30,318	)		—		32,436			—		32,436

(a)	Actual collateral received by the Fund is generally greater than the amount shown due to overcollateralization.
*	Subsequent to September 30, 2019, additional collateral was received.

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

Note 8 – Federal Income Tax Information

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 99

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2019, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost, and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
S&P 500® Pure Growth Fund	$	69,943,535	$	6,764,244	$	(887,260	)	$	5,876,984
S&P 500® Pure Value Fund		50,672,394		—		(1,450,271	)		(1,450,271	)
S&P MidCap 400® Pure Growth Fund		44,153,882		7,210,227		(2,121,353	)		5,088,874
S&P MidCap 400® Pure Value Fund		7,137,127		—		(2,638,480	)		(2,638,480	)
S&P SmallCap 600® Pure Growth Fund		7,753,979		606,890		(175,078	)		431,812
S&P SmallCap 600® Pure Value Fund		36,474,290		449,066		(846,119	)		(397,053	)
Europe 1.25x Strategy Fund		11,055,356		100,823		(52,240	)		48,583
Japan 2x Strategy Fund		2,488,140		51,480		(13,011	)		38,469
Strengthening Dollar 2x Strategy Fund		7,783,315		144,866		(2,996	)		141,870
Weakening Dollar 2x Strategy Fund		2,607,856		1,142		(49,716	)		(48,574	)

Note 9 – Securities Transactions

For the period ended September 30, 2019, 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	$	103,459,176	$	138,724,273
S&P 500® Pure Value Fund		65,421,686		66,823,348
S&P MidCap 400® Pure Growth Fund		23,743,985		39,185,973
S&P MidCap 400® Pure Value Fund		62,649,610		70,811,783
S&P SmallCap 600® Pure Growth Fund		17,091,119		19,641,076
S&P SmallCap 600® Pure Value Fund		58,227,844		33,757,885
Europe 1.25x Strategy Fund		79,166,065		91,212,295
Japan 2x Strategy Fund		—		150,000
Strengthening Dollar 2x Strategy Fund		—		200,000
Weakening Dollar 2x Strategy Fund		—		50,000

The Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by a Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2019, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain (Loss)
S&P 500® Pure Growth Fund	$	19,563,096	$	35,815,351	$	2,392,080
S&P 500® Pure Value Fund		6,262,176		18,797,502		(59,715	)
S&P MidCap 400® Pure Growth Fund		739,395		2,764,012		153,085
S&P MidCap 400® Pure Value Fund		2,312,137		2,271,453		23,108
S&P SmallCap 600® Pure Growth Fund		642,604		427,559		18,818
S&P SmallCap 600® Pure Value Fund		558,045		263,227		5,692
Europe 1.25x Strategy Fund		748,976		1,110,316		64,900

100 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 10 – Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 8, 2020. 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 3.41% for the period ended September 30, 2019. The Funds did not have any borrowings outstanding under this agreement at September 30, 2019.

The average daily balances borrowed for the period ended September 30, 2019, were as follows:

Fund	Average Daily Balance
S&P 500® Pure Growth Fund	$	6,011
S&P 500® Pure Value Fund		279
S&P MidCap 400® Pure Growth Fund		3,667
S&P MidCap 400® Pure Value Fund		617
S&P SmallCap 600® Pure Growth Fund		120
S&P SmallCap 600® Pure Value Fund		1,825

Note 11 – Legal Proceedings

Tribune Company

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

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

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2296 (S.D.N.Y.) (the “MDL Proceeding”).

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

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments.

On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 101

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.”

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intends to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend.

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

Note 12 – Subsequent Events

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

102 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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.

Special Meeting of Shareholders — Voting Results

A joint special meeting of shareholders of the Trust was held on October 24, 2019 to elect the following ten nominees to the Board of Trustees of the Trust: Randall C. Barnes, Angela Brock-Kyle, Donald A. Chubb, Jr., Jerry B. Farley, Roman Friedrich III, Thomas F. Lydon, Jr., Ronald A. Nyberg, Sandra G. Sponem, Ronald E. Toupin, Jr. and Amy J. Lee. At the meeting, the following votes were recorded:

Nominee	Shares For		Shares Withheld
Randall C. Barnes		182,013,322		3,038,253
Angela Brock-Kyle		182,013,119		3,038,456
Donald A. Chubb, Jr.		182,008,520		3,043,055
Jerry B. Farley		181,911,245		3,140,330
Roman Friedrich III		181,912,825		3,138,750
Thomas F. Lydon, Jr.		181,907,886		3,143,689
Ronald A. Nyberg		181,907,937		3,143,638
Sandra G. Sponem		181,907,670		3,143,905
Ronald E. Toupin, Jr.		181,906,696		3,144,879
Amy J. Lee		182,013,277		3,038,298

Corey A. Colehour and J. Kenneth Dalton resigned from the Board of Trustees of the Trust effective as of the conclusion of the quarterly meeting of the Board of Trustees of the Trust held on November 11, 2019.

Sector Classification

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

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. The Funds’ Forms N-PORT and 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 Investment Advisory Agreement

The Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”), each of whom is not an “interested person,” as defined by the Investment Company Act of 1940 (the “1940 Act”), of the Trust (the “Independent Trustees”), attended an in-person meeting held on May 20, 2019 (the “May Meeting”), called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the Advisory Agreement dated March 1, 2012, as amended, between the Trust and Security Investors, LLC (the “Advisor”), pursuant to which the Advisor serves as investment adviser to each series of the Trust (each, a “Fund” and collectively, the “Funds”)(the “Advisory Agreement”). Consistent with its practice, the Board considered information pertaining to the renewal of the Advisory Agreement at an in-person meeting held

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 103

OTHER INFORMATION (Unaudited)(continued)

on April 24, 2019 (the “April Meeting” and, together with the May Meeting, the “Meetings”). After careful consideration, the Board unanimously approved, at the May Meeting, the continuance of the Advisory Agreement for an additional one-year term based on the Board’s review of qualitative and quantitative information provided by the Advisor. In the course of its consideration, the Board deemed the materials provided by the Advisor at, and prior to, the Meetings to be instrumental in the Trustees’ deliberations and their process in considering the continuation of the Advisory Agreement. The Board also considered the review it conducted at each Meeting, as augmented by additional teleconference meetings prior to each Meeting, to be integral to its consideration of the continuation of the Advisory Agreement.

Prior to reaching the conclusion to approve the continuation of the Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as they deemed reasonably necessary to evaluate the Advisory Agreement. In addition, the Board received a memorandum from independent legal counsel to the Independent Trustees regarding the Board’s fiduciary responsibilities under state and federal law with respect to the Board’s consideration of the continuation of the Advisory Agreement, and participated in discussions with representatives of the Advisor during which the representatives answered the Independent Trustees’ questions and agreed to provide certain additional information for their consideration. 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 comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). In addition, at the April Meeting, the Board met with representatives of FUSE Research Network (“FUSE”), the independent third-party service provider engaged to prepare the FUSE reports, to review FUSE’s process and methodology for preparing the FUSE reports presented to the Board for its consideration, including in particular, the process for the selection of peer funds. The Independent Trustees carefully evaluated all of the information provided, 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 substantial commitment to the recruitment and retention of high quality personnel; (c) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts; (d) each Fund’s overall fees and operating expenses compared with those of similar funds, and the existence of or potential for the realization of economies of scale; (e) the level of the Advisor’s profitability from its Fund-related operations; (f) the Advisor’s compliance processes and systems; (g) the Advisor’s compliance policies and procedures; (h) the Advisor’s reputation, expertise and resources in the financial markets; (i) Fund performance compared with that of similar funds and/or appropriate benchmarks; (j) other benefits to the Advisor and/or its affiliates from their relationship to the Funds; and (k) the Advisor’s maintenance of operational resources and relationships with third-party service providers, necessary to manage the Funds in a professional manner consistent with the best interests of the Funds and their shareholders. In its deliberations, the Trustees did not identify any particular factor or factors as 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 Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees for each Fund are reasonable in light of, and not so disproportionately large as to bear no reasonable relationship to, the services that it provides to each Fund; and (c) agreed to approve the continuation of the Advisory Agreement for an additional one-year term 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), enterprise and Fund risk management infrastructure and processes, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity program. The Board reviewed the scope of services provided by the Advisor under the Advisory Agreement and noted that there would be no significant differences between the scope of services 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 continuation of the Advisory Agreement would ensure shareholders of the Funds continue to receive high quality services at a cost that is 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. Part of the Board’s review focused on the information presented in the FUSE reports, which provided comparisons of the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the FUSE 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

104 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(concluded)

or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board considered the Advisor’s opinion that it found the peer groups compiled by FUSE to be appropriate, but acknowledged the existence of certain key features of the Funds that differentiate them from their peer funds (e.g., specific differences in principal investment strategies, index rebalance frequency, and, in certain cases, the Fund’s tradability feature) that should be taken into consideration. With respect to tradability, in particular, the Board considered that non-tradable peer funds incur lower expense ratios than the tradable Funds because the non-tradable peer funds necessarily experience less shareholder activity and lower transaction volumes than the 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. The Board also considered recent fee trends produced, at least in part, by industry-wide pressure on fees, as well as the Trust’s niche registered investment adviser clientele. 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 Advisory Agreement for the last calendar year, noting the asset-based breakpoints implemented by the Advisor in June 2018 for the advisory fee rates for each series of the Trust (with the exception of the Trust’s Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund (the “Alternative Funds”). In its review, the Board considered the direct revenue 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, which the Advisor confirmed was unchanged from the previous year. In its evaluation, the Board also considered the effect of the sale of Guggenheim’s ETF business in April 2018 on the Advisor’s and its affiliates’ profitability for the past year. The Board also considered the challenges currently affecting the sale of mutual funds, including the continued fall-out from the Department of Labor’s failed Fiduciary Rule, and alternative investment funds. 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 asset-based breakpoints in the fee schedule to the Advisory Agreement, effective June 1, 2018, and discussed certain of the Funds’ potential to benefit from the future realization of economies of scale. The Board noted the absence of breakpoints for the Trust’s Alternative Funds and the factors differentiating the Alternative Funds from the Trust’s other Funds. The Board agreed it would continue to monitor the performance of the Alternative Funds to determine whether breakpoints are warranted. The Board reviewed the terms of the breakpoints for the other Funds and noted that many of the Funds had not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board also noted that it intends to monitor the asset levels and thresholds at which the breakpoints are set to determine if they continue to be appropriate in the future.

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 derived by the Advisor and its affiliates as a result of their relationship with the Funds, including any intangible benefits to the Advisor. In particular, the Board considered the nature, extent, quality, and cost of certain distribution and shareholder services performed by the Advisor’s affiliate, Guggenheim Funds Distributors, LLC, under separate distribution agreements, Distribution Plans and Distribution and Shareholder Services Plans 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 affiliate’s 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, unanimously concluded that the terms of the Advisory Agreement were reasonable, and that approval of the continuation of the Advisory Agreement for an additional one-year term was in the best interests of each Fund and its shareholders.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 105

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 Trustees	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**	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee (November 2019-present).	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	158	Current: Trustee, Purpose Investments Funds (2013-Present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).
Angela Brock-Kyle (1959)	Trustee and Member of the Audit Committee (2016-present); and Member of the Governance and Nominating Committee (2017-present).	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	157	None.
Donald A. Chubb, Jr. (1946)	Trustee (November 2019-present).	Current: Retired. Former: Business broker and manager of commercial real estate, Griffith & Blair, Inc. (1997-2017).	157	Former: Midland Care, Inc. (2011-2016).
Jerry B. Farley (1946)	Trustee (November 2019-present).	Current: President, Washburn University (1997-present).	157	Current: CoreFirst Bank & Trust (2000-Present). Former: Westar Energy, Inc. (2004-2018).
Roman Friedrich III (1946)	Trustee (November 2019-present).	Current: Founder and Managing Partner, Roman Friedrich & Company (1998-present).	157	Former: Zincore Metals, Inc. (2009-January 2019).
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit Committee (2005-present); and Chairman and Member of the Governance and Nominating Committee (2017-present).	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	157	Current: US Global Investors (GROW) (1995-present); and Harvest Volatility Edge Trust (3) (2017-present).

106 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth of Trustees	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**	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - continued
Ronald A. Nyberg (1953)	Trustee (November 2019-present).	Current: Partner, Momkus LLC (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	158	Current: PPM Funds (9) (2018 - present); Edward-Elmhurst Healthcare System (2012-present); Western Asset Inflation-Linked Opportunities & Income Fund (2004-present); Western Asset Inflation-Linked Income Fund (2003-present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).
Sandra G. Sponem (1958)	Trustee and Member of the Audit Committee (2016-present); Member of the Governance and Nominating Committee (2017-present); Chairwoman (January 2019-present); and Chairwoman of Audit Committee (November 2019-present).	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-2017).	157	Current: SPDR Series Trust (78) (2018-present); SPDR Index Shares Funds (31) (2018-present); SSGA Active Trust (12) (2018-present); and SSGA Master Trust (1) (2018-present).
Ronald E. Toupin, Jr. (1958)	Trustee (November 2019-present).	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	157	Current: Western Asset Inflation-Linked Opportunities & Income Fund (2004-present); Western Asset Inflation-Linked Income Fund (2003-present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 107

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

Name, Address* and Year of Birth of Trustees	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**	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer (November 2019-present).	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer (2017- 2018); President, certain other funds in the Fund Complex (2017-November 2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	157	None.

108 | 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
Brian E. Binder (1972)	President and Chief Executive Officer (November 2019-present)	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President and Chief Executive Officer, Guggenheim Funds Investment Advisors, LLC and Security Investors, LLC (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary (2017-present)	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).
Michael P. Megaris (1984)	Assistant Secretary (2018-present)	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present)	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer (2017-present)	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Director, Guggenheim Investments (2013-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 109

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
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).
William Rehder (1967)	Assistant Vice President (2018-present)	Current: Managing Director, Guggenheim Investments (2002-present).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: Chief Financial Officer, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and Chief Compliance Officer, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer (2017-present)	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014-2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	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.
***	Certain 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.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.
*****	Each Trustee serves an indefinite term, until his or her successor is elected and qualified.

110 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

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

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

Our Commitment to You

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

The Information We Collect About You

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

How We Handle Your Personal Information

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

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

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

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 111

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

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

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

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

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

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

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

Opt-Out Provisions and Your Data Choices

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

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

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

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

How We Protect Privacy Online

We take steps to protect your privacy when you use our web site – www.guggenheiminvestments.com – by using secure forms of online communication, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These safeguards vary based on the sensitivity of the information that we collect and store. However, we cannot and do not guarantee that these measures will prevent every unauthorized attempt to access, use, or disclose your information since despite our efforts, no Internet and/or other

112 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

electronic transmissions can be completely secure. Our web site uses “http cookies”—tiny pieces of information that we ask your browser to store. We use cookies for session management and security features on the Guggenheim Investments web site. We do not use them to pull data from your hard drive, to learn your e-mail address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

How We Safeguard Your Personal Information and Data Retention

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

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

International Visitors

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

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

We’ll Keep You Informed

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 113

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

9.30.2019

Rydex Funds Semi-Annual Report

Domestic Equity Fund

NASDAQ-100^® Fund

Beginning on January 1, 2021, paper copies of the Fund’s annual and semi-annual shareholder reports may no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a fund electronically by calling 800.820.0888, going to GuggenheimInvestments.com/myaccount, or by contacting your financial intermediary.

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

GuggenheimInvestments.com ROTC-SEMI-0919x0320

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
NASDAQ-100® FUND	9
NOTES TO FINANCIAL STATEMENTS	25
OTHER INFORMATION	43
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	45
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	52

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2019

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for NASDAQ-100^® Fund (the “Fund”) that is part of the Rydex Series Funds. This report covers performance of the Fund for the six-month period ended September 30, 2019.

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,

Security Investors, LLC

October 31, 2019

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

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

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. The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity markets as a whole.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2019

Economic data has been mixed over the past few months. On the positive side, we saw a pickup in the housing market as measured by housing starts and home sales, which could be a delayed response to lower mortgage rates. Industrial production had the strongest month-over-month gain in a year, partially boosted by an increase in oil production in Hurricane Barry’s wake. The unemployment rate fell to a 50-year low of 3.5% in September 2019, despite a continued moderation in payroll gains.

On the negative side, the Institute for Supply Management (“ISM”) Manufacturing Index plunged to the weakest reading since June 2009. The ISM Non-Manufacturing Index also came in well below expectations, the lowest since August 2016. Within both the manufacturing and non-manufacturing ISM indexes, analysts look at the employment component of the survey for an early read on other labor market indicators. Here we find more cause for concern: The non-manufacturing survey’s employment component is now barely above 50 while the manufacturing employment sub-index stands at 46.3, well into contraction territory. Combined, the outlook for output and hiring has dimmed, signaling trouble ahead for consumers.

Retail sales have been steady, but Commerce Department data showed that total consumer spending on goods and services increased only 0.1% month-over-month in August 2019, the smallest gain in six months. It is hard to identify the primary reason why consumers may already be turning more conservative on spending. Income growth looks steady, the equity market is higher year-to-date, and rates are lower, all of which should be boosting consumer confidence. Sentiment surveys, however, show that fewer consumers believe now is a good time to buy homes, vehicles, and household durables, and headline consumer confidence measures have ticked down. We believe trade policy and political concerns are weighing on sentiment, and these headwinds are set to ramp up further. Additional U.S. tariffs on China are due to take effect on December 15, 2019 and the U.S. House of Representatives is pressing forward with its impeachment inquiry into President Trump.

Guggenheim’s dashboard of U.S. recession indicators continues to point to a recession beginning as early as the first half of 2020, and we think the economic data is corroborating this view. Two of the more notable indicators pointing to high recession risk are the three-month/10-year U.S. Treasury yield curve, which has been inverted for 16 consecutive weeks through period end, and the Leading Economic Indicators Index which has slowed from a year-over-year growth rate of 6.6% in September 2018 to 1.1% as of August 2019. The indicators Guggenheim tracks as part of our recession probability model indicate a nearly 50% chance that a recession will come before mid-2020, and a 70% chance that it will arrive by mid-2021.

Over the period, the U.S. Treasury curve continued its overall flattening trend, as the difference between the two-year U.S. Treasury and 10-year U.S. Treasury narrowed to 5 basis points. Equity markets remained volatile, buoyed by a 25 basis point cut in July and September 2019 by the U.S. Federal Reserve (the “Fed”) and relatively strong U.S. economic data, but weighed down by trade war uncertainty and fears of a global slowdown.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited)(continued) September 30, 2019

With downside risks growing, markets have become more sensitive to the Fed’s communications about the future stance of monetary policy. Despite the two rate cuts, Fed policymakers are deeply divided. It is still unclear whether the Fed will deliver the aggressive and preemptive policy action that would prolong the current expansion.

As it relates to risk-taking, we are not confident that the Fed would succeed in easing credit conditions if conditions were to tighten materially. The Fed may act too late, or its actions may have little impact given that low rates this year have largely failed to stimulate growth. With credit spreads still relatively tight on a historical basis, we believe it is prudent to remain up in quality as we await better opportunities to deploy capital in riskier credit sectors in the coming downturn.

For the six-month period ended September 30, 2019, the Standard & Poor’s 500^® (“S&P 500”) Index^* returned 6.08%. The MSCI Europe-Australasia-Far East (“EAFE”) Index^* returned 2.93%. The return of the MSCI Emerging Markets Index^* was -3.40%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index^* posted a 5.42% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index^* returned 3.87%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index^* was 1.20% 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.

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2019

^*Index Definitions:

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

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

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

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

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

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, 2019 and ending September 30, 2019.

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.

6 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Table 1. Based on actual Fund return3
NASDAQ-100® Fund
Investor Class	1.36%	4.85%	$ 1,000.00	$ 1,048.50	$ 6.98
A-Class	1.61%	4.71%	1,000.00	1,047.10	8.26
C-Class	2.36%	4.31%	1,000.00	1,043.10	12.09
H-Class	1.61%	4.71%	1,000.00	1,047.10	8.26
Table 2. Based on hypothetical 5% return (before expenses)
NASDAQ-100® 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

1	Annualized and excludes expenses of the underlying funds in which the Fund invests, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2019 to September 30, 2019.

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

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)
Microsoft Corp.	10.7%
Apple, Inc.	10.2%
Amazon.com, Inc.	8.6%
Facebook, Inc. — Class A	4.3%
Alphabet, Inc. — Class C	4.3%
Alphabet, Inc. — Class A	3.8%
Intel Corp.	2.5%
Cisco Systems, Inc.	2.4%
Comcast Corp. — Class A	2.3%
PepsiCo, Inc.	2.1%
Top Ten Total	51.2%

“Ten Largest Holdings” excludes any temporary cash or derivative investments.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
Investor Class Shares	4.85%	1.26%	13.70%	16.09%
A-Class Shares	4.71%	1.02%	13.39%	15.77%
A-Class Shares with sales charge‡	(0.27%)	(3.79%)	12.29%	15.21%
C-Class Shares	4.31%	0.26%	12.57%	14.94%
C-Class Shares with CDSC§	3.31%	(0.72%)	12.57%	14.94%
NASDAQ-100 Index	5.59%	2.73%	15.19%	17.58%

	6 Month†	1 Year	5 Year	Since Inception (09/18/14)
H-Class Shares	4.71%	1.02%	13.38%	13.00%
NASDAQ-100 Index	5.59%	2.73%	15.19%	14.79%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The NASDAQ-100® Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
NASDAQ-100® FUND

	Shares		Value
COMMON STOCKS† - 92.8%
Technology - 39.0%
Microsoft Corp.		905,075	$	125,832,577
Apple, Inc.		535,703		119,981,401
Intel Corp.		582,769		30,030,087
Adobe, Inc.*		63,860		17,641,325
Texas Instruments, Inc.		122,818		15,872,998
Broadcom, Inc.		52,367		14,456,958
NVIDIA Corp.		80,114		13,945,444
QUALCOMM, Inc.		159,920		12,198,698
Fiserv, Inc.*		89,413		9,262,293
Intuit, Inc.		34,213		9,098,605
Micron Technology, Inc.*		145,206		6,222,077
Applied Materials, Inc.		121,520		6,063,848
Analog Devices, Inc.		48,595		5,429,519
Activision Blizzard, Inc.		100,903		5,339,787
NXP Semiconductor N.V.		43,241		4,718,458
Lam Research Corp.		19,013		4,394,094
Cognizant Technology Solutions Corp. — Class A		72,654		4,378,493
Autodesk, Inc.*		28,891		4,267,201
Advanced Micro Devices, Inc.*		142,804		4,139,888
Paychex, Inc.		47,273		3,912,786
Electronic Arts, Inc.*		38,769		3,792,383
Workday, Inc. — Class A*		21,574		3,666,717
KLA Corp.		20,950		3,340,477
Xilinx, Inc.		33,230		3,186,757
Microchip Technology, Inc.		31,316		2,909,570
Cerner Corp.		41,885		2,855,300
Synopsys, Inc.*		19,771		2,713,570
NetEase, Inc. ADR		9,598		2,554,796
Cadence Design Systems, Inc.*		36,855		2,435,378
ASML Holding N.V. — Class G		9,556		2,373,902
Western Digital Corp.		38,939		2,322,322
Check Point Software Technologies Ltd.*		20,027		2,192,957
Maxim Integrated Products, Inc.		35,686		2,066,576
Take-Two Interactive Software, Inc.*		14,890		1,866,313
Skyworks Solutions, Inc.		22,588		1,790,099
Citrix Systems, Inc.		17,221		1,662,171
NetApp, Inc.		31,297		1,643,405
Total Technology				460,559,230
Communications - 32.4%
Amazon.com, Inc.*		58,646		101,804,178
Facebook, Inc. — Class A*		287,861		51,262,287
Alphabet, Inc. — Class C*		41,487		50,572,653
Alphabet, Inc. — Class A*		36,495		44,565,504
Cisco Systems, Inc.		563,132		27,824,352
Comcast Corp. — Class A		596,653		26,897,117
Netflix, Inc.*		57,597		15,414,109
Charter Communications, Inc. — Class A*		29,136		12,007,528
Booking Holdings, Inc.*		5,593		10,976,878
T-Mobile US, Inc.*		112,404		8,854,063
eBay, Inc.		110,340		4,301,053
Baidu, Inc. ADR*		37,053		3,807,566
Sirius XM Holdings, Inc.1		585,375		3,661,521
MercadoLibre, Inc.*		6,539		3,604,493
JD.com, Inc. ADR*		121,715		3,433,580
VeriSign, Inc.*		15,572		2,937,346
Expedia Group, Inc.		18,001		2,419,515
Symantec Corp.		81,302		1,921,166
Ctrip.com International Ltd. ADR*		64,062		1,876,376
Liberty Global plc — Class C*		67,512		1,606,111
Fox Corp. — Class A		45,403		1,431,784
Fox Corp. — Class B		34,534		1,089,202
Liberty Global plc — Class A*		26,971		667,532
Total Communications				382,935,914

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
NASDAQ-100® FUND

	Shares		Value
Consumer, Non-cyclical - 13.1%
PepsiCo, Inc.		183,930	$	25,216,803
PayPal Holdings, Inc.*		154,792		16,034,903
Amgen, Inc.		78,891		15,266,197
Gilead Sciences, Inc.		166,603		10,559,298
Mondelez International, Inc. — Class A		189,716		10,495,089
Celgene Corp.*		93,235		9,258,236
Automatic Data Processing, Inc.		57,085		9,214,661
Intuitive Surgical, Inc.*		15,162		8,186,419
Illumina, Inc.*		19,339		5,883,311
Vertex Pharmaceuticals, Inc.*		33,814		5,728,768
Biogen, Inc.*		24,264		5,649,145
Kraft Heinz Co.		160,490		4,483,288
Monster Beverage Corp.*		71,679		4,161,683
Regeneron Pharmaceuticals, Inc.*		14,206		3,940,744
Cintas Corp.		13,483		3,614,793
Verisk Analytics, Inc. — Class A		21,509		3,401,433
IDEXX Laboratories, Inc.*		11,326		3,079,879
Alexion Pharmaceuticals, Inc.*		29,498		2,889,034
Incyte Corp.*		28,292		2,100,115
Align Technology, Inc.*		10,507		1,900,926
BioMarin Pharmaceutical, Inc.*		23,608		1,591,179
Mylan N.V.*		67,863		1,342,330
Henry Schein, Inc.*		19,504		1,238,504
Total Consumer, Non-cyclical				155,236,738
Consumer, Cyclical - 6.8%
Costco Wholesale Corp.		57,855		16,668,604
Starbucks Corp.		157,466		13,923,144
Walgreens Boots Alliance, Inc.		118,809		6,571,326
Tesla, Inc.*,1		23,564		5,675,861
Marriott International, Inc. — Class A		43,327		5,388,579
Ross Stores, Inc.		47,976		5,270,164
O’Reilly Automotive, Inc.*		10,066		4,011,402
Dollar Tree, Inc.*		31,128		3,553,572
PACCAR, Inc.		45,565		3,190,005
Lululemon Athletica, Inc.*		16,167		3,112,632
United Airlines Holdings, Inc.*		33,799		2,988,169
Fastenal Co.		75,435		2,464,462
Hasbro, Inc.		16,602		1,970,492
Ulta Beauty, Inc.*		7,742		1,940,532
American Airlines Group, Inc.		58,576		1,579,795
Wynn Resorts Ltd.		14,157		1,539,149
Total Consumer, Cyclical				79,847,888
Industrial - 0.8%
CSX Corp.		105,000		7,273,350
J.B. Hunt Transport Services, Inc.		14,046		1,554,190
Total Industrial				8,827,540
Utilities - 0.4%
Xcel Energy, Inc.		67,750		4,396,297
Financial - 0.3%
Willis Towers Watson plc		16,969		3,274,508
Total Common Stocks
(Cost $518,715,147)				1,095,078,115
MUTUAL FUNDS† - 3.1%
Guggenheim Strategy Fund II2		575,584		14,291,762
Guggenheim Ultra Short Duration Fund — Institutional Class2		1,299,316		12,941,191
Guggenheim Strategy Fund III2		356,029		8,836,640
Total Mutual Funds
(Cost $36,228,710)				36,069,593

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
NASDAQ-100® FUND

	Face Amount		Value
FEDERAL AGENCY NOTES†† - 1.0%
Farmer Mac
1.98% (U.S. Prime Rate - 3.02%, Rate Floor: 0.00%) due 09/01/203	$	9,500,000	$	9,499,974
Freddie Mac
2.85% due 05/06/24		2,665,000		2,666,979
Total Federal Agency Notes
(Cost $12,167,977)				12,166,953
U.S. TREASURY BILLS†† - 0.6%
U.S. Treasury Bills
1.93% due 10/29/194,5		6,817,000		6,807,098
1.82% due 11/21/195,7		475,000		473,793
Total U.S. Treasury Bills
(Cost $7,280,337)				7,280,891
FEDERAL AGENCY DISCOUNT NOTES†† - 0.6%
Federal Home Loan Bank
1.88% due 10/18/195		7,200,000		7,193,608
Total Federal Agency Discount Notes
(Cost $7,193,608)				7,193,608
REPURCHASE AGREEMENTS††,6 - 2.1%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/197		15,186,661		15,186,661
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/197		4,883,524		4,883,524
Barclays Capital issued 09/30/19 at 2.00% due 10/01/197		4,395,171		4,395,171
Total Repurchase Agreements
(Cost $24,465,356)				24,465,356
	Shares		Value
SECURITIES LENDING COLLATERAL†,8 - 0.5%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%9		6,376,539		6,376,539
Total Securities Lending Collateral
(Cost $6,376,539)				6,376,539
Total Investments - 100.7%
(Cost $612,427,674)			$	1,188,631,055
Other Assets & Liabilities, net - (0.7)%				(7,750,106	)
Total Net Assets - 100.0%			$	1,180,880,949

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
NASDAQ-100® FUND

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Equity Futures Contracts Purchased†
NASDAQ-100 Index Mini Futures Contracts		487		Dec 2019	$	75,657,885	$	(845,100	)

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay			Payment Frequency	Maturity Date		Units	Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
BNP Paribas	NASDAQ-100 Index		2.69	%	At Maturity	10/29/19	204		$	1,583,368	$	(11,049	)
Barclays Bank plc	NASDAQ-100 Index		2.41	%	At Maturity	10/31/19	586			4,542,231		(13,213	)
Goldman Sachs International	NASDAQ-100 Index		2.46	%	At Maturity	10/28/19	628			4,868,382		(14,163	)
									$	10,993,981	$	(38,425	)

*	Non-income producing security.
**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Affiliated issuer.
3	Variable rate security. Rate indicated is the rate effective at September 30, 2019. In some instances, the effective rate is limited by a minimum rate floor or a maximum rate cap established by the issuer. The settlement status of a position may also impact the effective rate indicated. In some cases, a position may be unsettled at period end and may not have a stated effective rate. In instances where multiple underlying reference rates and spread amounts are shown, the effective rate is based on a weighted average.
4	All or a portion of this security is pledged as futures collateral at September 30, 2019.
5	Rate indicated is the effective yield at the time of purchase.
6	Repurchase Agreements — See Note 6.
7	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
8	Securities lending collateral — See Note 7.
9	Rate indicated is the 7-day yield as of September 30, 2019.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
NASDAQ-100® FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	1,095,078,115	$	—	$	—	$	1,095,078,115
Mutual Funds		36,069,593		—		—		36,069,593
Federal Agency Notes		—		12,166,953		—		12,166,953
U.S. Treasury Bills		—		7,280,891		—		7,280,891
Federal Agency Discount Notes		—		7,193,608		—		7,193,608
Repurchase Agreements		—		24,465,356		—		24,465,356
Securities Lending Collateral		6,376,539		—		—		6,376,539
Total Assets	$	1,137,524,247	$	51,106,808	$	—	$	1,188,631,055

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Futures Contracts**	$	845,100	$	—	$	—	$	845,100
Equity Index Swap Agreements**		—		38,425		—		38,425
Total Liabilities	$	845,100	$	38,425	$	—	$	883,525

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
NASDAQ-100® FUND

Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a company, or control of or by, or common control under Guggenheim Investments (“GI”), result in that company being considered an affiliated issuer, as defined in the 1940 Act.

The Fund may invest in certain of the underlying series of Guggenheim Strategy Funds Trust, including Guggenheim Strategy Fund II and Guggenheim Strategy Fund III, (collectively, the “Cash Management Funds”), each of which are 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, 2018, is available publicly or upon request. This information is available from the EDGAR database on the SEC’s website at https://www.sec.gov/Archives/edgar/data/1601445/000089180418000513/gug75569-ncsr.htm.

Transactions during the period ended September 30, 2019, in which the company is an affiliated issuer, were as follows:

Security Name	Value 03/31/19		Additions		Reductions		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Value 09/30/19		Shares 09/30/19		Investment Income
Mutual Funds
Guggenheim Strategy Fund II	$	14,280,251	$	—	$	—	$	—	$	11,511		$	14,291,762		575,584	$	196,537
Guggenheim Strategy Fund III		8,825,959		—		—		—		10,681			8,836,640		356,029		119,234
Guggenheim Ultra Short Duration Fund — Institutional Class		11,953,180		1,000,000		—		—		(11,989	)		12,941,191		1,299,316		168,663
	$	35,059,390	$	1,000,000	$	—	$	—	$	10,203		$	36,069,593			$	484,434

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

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

NASDAQ-100^® FUND

September 30, 2019

Assets:
Investments in unaffiliated issuers, at value - including $6,190,536 of securities loaned (cost $551,733,608)	$	1,128,096,106
Investments in affiliated issuers, at value (cost $36,228,710)		36,069,593
Repurchase agreements, at value (cost $24,465,356)		24,465,356
Segregated cash with broker		2,366
Receivables:
Securities sold		1,993,429
Variation margin on futures contracts		647,710
Dividends		394,436
Fund shares sold		166,376
Interest		49,065
Securities lending income		1,079
Total assets		1,191,885,516
Liabilities:
Unrealized depreciation on OTC swap agreements		38,425
Payable for:
Return of securities lending collateral		6,376,539
Fund shares redeemed		1,939,410
Management fees		689,841
Printing fees		299,701
Transfer agent and administrative fees		230,774
Professional fees		224,343
Swap settlement		167,946
Distribution and service fees		85,335
Portfolio accounting fees		53,584
Trustees’ fees*		22,225
Miscellaneous		876,444
Total liabilities		11,004,567
Commitments and contingent liabilities (Note 11)		—
Net assets	$	1,180,880,949
Net assets consist of:
Paid in capital	$	593,633,038
Total distributable earnings (loss)		587,247,911
Net assets	$	1,180,880,949
Investor Class:
Net assets	$	1,008,529,652
Capital shares outstanding		25,053,718
Net asset value per share	$	40.25
A-Class:
Net assets	$	51,615,627
Capital shares outstanding		1,397,861
Net asset value per share	$	36.92
Maximum offering price per share (Net asset value divided by 95.25%)	$	38.76
C-Class:
Net assets	$	86,243,473
Capital shares outstanding		2,698,307
Net asset value per share	$	31.96
H-Class:
Net assets	$	34,492,197
Capital shares outstanding		934,265
Net asset value per share	$	36.92

^* 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 | 17

STATEMENT OF OPERATIONS (Unaudited)

NASDAQ-100^® FUND

Period Ended September 30, 2019

Investment Income:
Dividends from securities of unaffiliated issuers (net of foreign withholding tax of $8,360)	$	5,702,280
Dividends from securities of affiliated issuers		484,434
Interest		1,014,114
Income from securities lending, net		4,600
Total investment income		7,205,428
Expenses:
Management fees		4,476,376
Distribution and service fees:
A-Class		71,095
C-Class		433,769
H-Class		51,930
Transfer agent and administrative fees		1,492,125
Registration fees		474,034
Portfolio accounting fees		348,269
Trustees’ fees*		135,730
Custodian fees		83,860
Interest expense		120
Miscellaneous		1,111,507
Total expenses		8,678,815
Less:
Expenses waived by Adviser		(15,208	)
Net expenses		8,663,607
Net investment loss		(1,458,179	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments	$	26,040,583
Swap agreements		337,347
Futures contracts		7,672,483
Net realized gain		34,050,413
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		20,218,346
Investments in affiliated issuers		10,203
Swap agreements		(100,824	)
Futures contracts		(4,501,828	)
Net change in unrealized appreciation (depreciation)		15,625,897
Net realized and unrealized gain		49,676,310
Net increase in net assets resulting from operations	$	48,218,131

^* 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.

STATEMENTS OF CHANGES IN NET ASSETS

NASDAQ-100^® FUND

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,458,179	)	$	(2,672,127	)
Net realized gain on investments		34,050,413			29,980,370
Net change in unrealized appreciation (depreciation) on investments		15,625,897			88,603,777
Net increase in net assets resulting from operations		48,218,131			115,912,020
Distributions to shareholders:
Investor Class		—			(15,419,551	)
A-Class		—			(985,618	)
C-Class		—			(1,757,606	)
H-Class		—			(662,148	)
Total distributions to shareholders		—			(18,824,923	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		784,764,946			1,133,065,829
A-Class		10,933,344			45,605,047
C-Class		8,779,404			30,479,325
H-Class		96,919,903			136,853,790
Distributions reinvested
Investor Class		—			14,906,982
A-Class		—			845,201
C-Class		—			1,687,671
H-Class		—			660,051
Cost of shares redeemed
Investor Class		(795,704,314	)		(1,176,363,858	)
A-Class		(21,149,967	)		(43,829,464	)
C-Class		(11,428,798	)		(38,634,376	)
H-Class		(110,697,983	)		(160,150,861	)
Net decrease from capital share transactions		(37,583,465	)		(54,874,663	)
Net increase in net assets		10,634,666			42,212,434
Net assets:
Beginning of period		1,170,246,283			1,128,033,849
End of period	$	1,180,880,949		$	1,170,246,283

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

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

NASDAQ-100^® FUND

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Capital share activity:
Shares sold
Investor Class		19,755,906			30,604,193
A-Class		302,442			1,323,544
C-Class		276,604			1,009,503
H-Class		2,660,680			4,004,601
Shares issued from reinvestment of distributions
Investor Class		—			423,253
A-Class		—			26,111
C-Class		—			59,869
H-Class		—			20,391
Shares redeemed
Investor Class		(20,218,634	)		(32,014,747	)
A-Class		(578,344	)		(1,297,551	)
C-Class		(361,656	)		(1,296,281	)
H-Class		(3,038,969	)		(4,713,948	)
Net decrease in shares		(1,201,971	)		(1,851,062	)

20 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	38.39		$	34.94		$	30.68		$	25.75		$	25.38		$	21.38
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.05	)		(.05	)		(.06	)		(.05	)		(.01	)
Net gain (loss) on investments (realized and unrealized)		1.89			4.11			6.35			5.47			.96			4.39
Total from investment operations		1.86			4.06			6.30			5.41			.91			4.38
Less distributions from:
Net realized gains		—			(.61	)		(2.04	)		(.48	)		(.54	)		(.38	)
Total distributions		—			(.61	)		(2.04	)		(.48	)		(.54	)		(.38	)
Net asset value, end of period	$	40.25		$	38.39		$	34.94		$	30.68		$	25.75		$	25.38
Total Return		4.85	%		11.79	%		20.76	%		21.21	%		3.49	%		20.53	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,008,530		$	979,675		$	926,146		$	760,485		$	667,018		$	769,257
Ratios to average net assets:
Net investment income (loss)		(0.15	%)		(0.14	%)		(0.14	%)		(0.21	%)		(0.19	%)		(0.05	%)
Total expensesc		1.36	%		1.36	%		1.28	%		1.29	%		1.25	%		1.26	%
Net expensesd		1.36	%		1.36	%		1.28	%		1.29	%		1.25	%		1.26	%
Portfolio turnover rate		33	%		32	%		48	%		72	%		228	%		267	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	35.26		$	32.22		$	28.49		$	24.04		$	23.78		$	20.10
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.13	)		(.12	)		(.13	)		(.10	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		1.73			3.78			5.89			5.06			.90			4.12
Total from investment operations		1.66			3.65			5.77			4.93			.80			4.06
Less distributions from:
Net realized gains		—			(.61	)		(2.04	)		(.48	)		(.54	)		(.38	)
Total distributions		—			(.61	)		(2.04	)		(.48	)		(.54	)		(.38	)
Net asset value, end of period	$	36.92		$	35.26		$	32.22		$	28.49		$	24.04		$	23.78
Total Returne		4.71	%		11.51	%		20.44	%		20.76	%		3.26	%		20.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	51,616		$	59,021		$	52,257		$	63,311		$	60,499		$	70,821
Ratios to average net assets:
Net investment income (loss)		(0.40	%)		(0.38	%)		(0.39	%)		(0.51	%)		(0.42	%)		(0.29	%)
Total expensesc		1.61	%		1.61	%		1.53	%		1.53	%		1.51	%		1.50	%
Net expensesd		1.61	%		1.61	%		1.53	%		1.53	%		1.51	%		1.50	%
Portfolio turnover rate		33	%		32	%		48	%		72	%		228	%		267	%

22 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	30.64		$	28.29		$	25.41		$	21.62		$	21.60		$	18.42
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.34	)		(.32	)		(.28	)		(.26	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		1.50			3.30			5.24			4.55			.82			3.77
Total from investment operations		1.32			2.96			4.92			4.27			.56			3.56
Less distributions from:
Net realized gains		—			(.61	)		(2.04	)		(.48	)		(.54	)		(.38	)
Total distributions		—			(.61	)		(2.04	)		(.48	)		(.54	)		(.38	)
Net asset value, end of period	$	31.96		$	30.64		$	28.29		$	25.41		$	21.62		$	21.60
Total Returne		4.31	%		10.70	%		19.57	%		19.98	%		2.48	%		19.37	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	86,243		$	85,274		$	85,149		$	58,647		$	38,900		$	32,324
Ratios to average net assets:
Net investment income (loss)		(1.15	%)		(1.14	%)		(1.15	%)		(1.21	%)		(1.19	%)		(1.05	%)
Total expensesc		2.36	%		2.36	%		2.28	%		2.28	%		2.26	%		2.25	%
Net expensesd		2.36	%		2.36	%		2.28	%		2.28	%		2.26	%		2.25	%
Portfolio turnover rate		33	%		32	%		48	%		72	%		228	%		267	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Period Ended March 31, 2015f
Per Share Data
Net asset value, beginning of period	$	35.26		$	32.22		$	28.49		$	24.00		$	23.76		$	22.91
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.13	)		(.12	)		(.14	)		(.13	)		.01
Net gain (loss) on investments (realized and unrealized)		1.73			3.78			5.89			5.11			.91			1.22
Total from investment operations		1.66			3.65			5.77			4.97			.78			1.23
Less distributions from:
Net realized gains		—			(.61	)		(2.04	)		(.48	)		(.54	)		(.38	)
Total distributions		—			(.61	)		(2.04	)		(.48	)		(.54	)		(.38	)
Net asset value, end of period	$	36.92		$	35.26		$	32.22		$	28.49		$	24.00		$	23.76
Total Return		4.71	%		11.51	%		20.49	%		20.92	%		3.18	%		5.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	34,492		$	46,276		$	64,483		$	53,441		$	173,638		$	12,009
Ratios to average net assets:
Net investment income (loss)		(0.39	%)		(0.37	%)		(0.37	%)		(0.57	%)		(0.51	%)		0.07	%
Total expensesc		1.61	%		1.61	%		1.53	%		1.54	%		1.51	%		1.47	%
Net expensesd		1.61	%		1.61	%		1.53	%		1.54	%		1.51	%		1.47	%
Portfolio turnover rate		33	%		32	%		48	%		72	%		228	%		267	%

a	Unaudited figures for the period ended September 30, 2019. 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	Does not include expenses of the underlying funds in which the Fund invests.
d	Net expense information reflects the expense ratios after expense waivers and reimbursements, as applicable.
e	Total return does not reflect the impact of any applicable sales charges.
f	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (“1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate fund. The Trust 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. C-Class shares automatically convert to A-Class shares on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2019, the Trust consisted of fifty-two funds (collectively, the “Funds”).

This report covers the NASDAQ-100^® Fund (the “Fund”) a non-diversified investment company.

At September 30, 2019, 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.

Security Investors, LLC which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

Significant Accounting Policies

The Fund operates as an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 25

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) Valuation of Investments

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

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

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

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

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

U.S. Government securities are valued by either independent pricing services, the last traded fill price, or at the reported bid price at the close of business.

26 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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. Money market funds are valued at their NAV.

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

The value of futures contracts is accounted for using the unrealized appreciation or depreciation on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The values of other swap agreements entered into by the Fund are accounted for using the unrealized appreciation or depreciation on the agreements that are determined by marking the agreements to the last quoted value of the index that the swaps pertain to at the close of the New York Stock Exchange (“NYSE”).

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

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 27

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

(b) U.S. Government and Agency Obligations

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedule of Investments reflect the effective rates paid at the time of purchase by the Fund. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

(c) Futures Contracts

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

(d) Swap Agreements

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

(e) Foreign Taxes

The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and reflected in its Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of September 30, 2019, if any, are disclosed in the Fund’s Statement of Assets and Liabilities.

(f) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts (“REITs”) is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess

28 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(g) Distributions

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

(h) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust based on the respective net assets of each Fund included in the Trust.

(i) Cash

The Fund may leave cash overnight in its cash account with the custodian. Periodically, the Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 1.90% at September 30, 2019.

(J) Indemnifications

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

Note 2 – Derivatives

As part of its investment strategy, the Fund utilizes a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of amounts recognized 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 29

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 utilized derivatives for the following purposes:

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

Futures Contracts

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to a Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as segregated cash with broker on the Statement of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

The following table represents the Fund’s use and volume of futures on a quarterly basis:

	Average Notional Amount
Use	Long
Index Exposure, Liquidity	$	70,296,568

30 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Swap Agreements

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing OTC swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. Upon entering into certain centrally-cleared swap transactions, the Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin payments or receipts are made or received by the Fund, depending on fluctuations in the fair value of the reference entity. For a fund utilizing centrally cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Total return and custom basket swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as index or custom basket of securities) for a fixed or variable interest rate. Total return and custom basket swaps will usually be computed based on the current value of the reference asset as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. The fund utilizing total return or custom basket 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 reference asset declines in value.

The following table represents the Fund’s use and volume of total return swaps on a quarterly basis:

	Average Notional Amount
Use	Long
Index Exposure, Liquidity	$	24,308,333

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, 2019:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity contracts	Variation margin on futures contracts	Unrealized depreciation on OTC swap agreements

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 31

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table sets forth the fair value of the Fund’s derivative investments categorized by primary risk exposure at September 30, 2019:

Liability Derivative Investments Value
	Futures Equity Risk*		Swaps Equity Risk		Total Value at September 30, 2019
	$	845,100	$	38,425	$	883,525

^* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. 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, 2019:

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, 2019:

Realized Gain (Loss) on Derivative Investments Recognized on the Statement of Operations
	Futures Equity Risk		Swaps Equity Risk		Total
	$	7,672,483	$	337,347	$	8,009,830

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statement of Operations
	Futures Equity Risk			Swaps Equity Risk			Total
	$	(4,501,828	)	$	(100,824	)	$	(4,602,652	)

32 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

In conjunction with short sale and the use of derivative instruments, the Fund is required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Fund uses margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Fund as collateral.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

Note 3 – Offsetting

In the normal course of business, the Fund enters into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Fund to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, are reported separately on the Statement of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Fund in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Fund, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Fund, as applicable. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 33

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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:

							Gross Amounts Not Offset in the Statement of Assets and Liabilities
Instrument	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amount of Liabilities Presented on the Statement of Assets and Liabilities		Financial Instruments			Cash Collateral Pledged			Net Amount
Swap equity contracts	$	38,425	$	—	$	38,425	$	(14,163	)	$	(2,366	)	$	21,896

The Fund has the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of September 30, 2019.

Counterparty	Asset Type	Cash Pledged		Cash Received
Barclays Bank plc	Total Return Swap agreements	$	2,366	$	—

Note 4 – Fair Value Measurement

In accordance with U.S. GAAP, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for 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.).

34 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

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

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

Note 5 – Investment Advisory Agreement and Other Agreements

Under the terms of an investment advisory contract, the Fund pays GI investment advisory fees calculated at an annualized rate of 0.75% of the average daily net assets of the Fund.

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

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

GI 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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 35

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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, 2019, GFD retained sales charges of $42,539 relating to sales of A-Class shares of the Trust.

If the Fund invests in a fund that is advised by the same adviser or an affiliated adviser, the investing Fund’s adviser has agreed to waive fees at the investing fund level to the extent necessary to offset the proportionate share of any management fee paid by the Fund with respect to its investment in such affiliated fund. Fee waivers will be calculated at the investing Fund level without regard to any expense cap, if any, in effect for the investing Fund. Fees waived under this arrangement are not subject to reimbursement to GI. For the period ended September 30, 2019, the Fund waived $15,208 related to investments in affiliated funds.

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

MUFG Investor Services (US), LLC (“MUIS”) acts as the Fund’s administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS is responsible for maintaining the books and records of the Fund’s securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Fund’s custodian. As custodian, U.S. Bank is responsible for the custody of the Fund’s assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of the Fund’s average daily net assets and out of pocket expenses.

Note 6 – Repurchase Agreements

The Fund transfers uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report. The collateral is in the possession of the 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.

36 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2019, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
JPMorgan Chase & Co.					U.S. Treasury Note
2.35%					1.75%
Due 10/01/19	$	194,737,402	$	194,750,114	06/30/22	$	196,919,400	$	198,632,205
Bank of America Merrill Lynch					U.S. TIP Note
2.28%					1.25%
Due 10/01/19		62,621,053		62,625,019	07/15/20		63,404,852		63,873,490
Barclays Capital					U.S. Treasury Bond
2.00%					3.38%
Due 10/01/19		56,358,948		56,362,079	05/15/44		45,816,100		57,486,205

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

Note 7 – Portfolio Securities Loaned

The Fund may lend its securities to approved brokers to earn additional income. Security lending income shown on the Statement of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Fund act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Fund receives cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Fund’s securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Fund bears the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Fund the next business day. Although the collateral mitigates the risk, the Fund could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 37

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2019, the Fund participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

Gross Amounts Not Offset in the Statement of Assets and Liabilities							Securities Lending Collateral
Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
$	6,190,536	$	(6,190,536	)	$	—	$	6,376,539	$	—	$	6,376,539

In the event of counterparty default, the Fund has the right to collect the collateral to offset losses incurred. There is potential loss to the Fund in the event the Fund is delayed or prevented from exercising its right to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Fund seeks to assert its rights. GI, acting under the supervision of the Board, reviews the value of the collateral and the creditworthiness of those banks and dealers to evaluate potential risks.

Note 8 – Federal Income Tax Information

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

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

At September 30, 2019, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost, and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value were as follows:

Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
$	663,479,060	$	535,551,730	$	(11,283,260	)	$	524,268,470

38 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Note 9 – Securities Transactions

For the period ended September 30, 2019, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Purchases		Sales
$	366,161,265	$	388,564,089

The Fund is permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each transaction is effected at the current market price to save costs, where permissible. For the period ended September 30, 2019, the Fund engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Purchases		Sales		Realized Loss
$	120,893,409	$	121,867,953	$	3,224,806

Note 10 – Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 8, 2020. 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 3.41% for the period ended September 30, 2019. The Fund did not have any borrowings outstanding under this agreement at September 30, 2019.

Note 11 – Legal Proceedings

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,

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 39

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

and others involved in the LBO. The plaintiff is also attempting to obtain from former Tribune shareholders, including the Rydex Series Funds, the proceeds they received in connection with the LBO.

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

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2296 (S.D.N.Y.) (the “MDL Proceeding”).

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

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments.

On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.”

40 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intends to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend.

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,

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 41

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

Multi-Hedge Strategies Fund and Hedged Equity Fund (the “Funds”). The value of the proceeds received by the foregoing Funds was $28,220, $109,242, $9,860, $3,400, $1,181,160, and $10,880, respectively. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

Note 12 – Subsequent Events

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

42 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Nominee	Shares For		Shares Withheld
Randall C. Barnes		182,013,322		3,038,253
Angela Brock-Kyle		182,013,119		3,038,456
Donald A. Chubb, Jr.		182,008,520		3,043,055
Jerry B. Farley		181,911,245		3,140,330
Roman Friedrich III		181,912,825		3,138,750
Thomas F. Lydon, Jr.		181,907,886		3,143,689
Ronald A. Nyberg		181,907,937		3,143,638
Sandra G. Sponem		181,907,670		3,143,905
Ronald E. Toupin, Jr.		181,906,696		3,144,879
Amy J. Lee		182,013,277		3,038,298

Corey A. Colehour and J. Kenneth Dalton resigned from the Board of Trustees of the Trust effective as of the conclusion of the quarterly meeting of the Board of Trustees of the Trust held on November 11, 2019.

Sector Classification

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 43

OTHER INFORMATION (Unaudited)(concluded)

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Fund’s Forms N-PORT and N-Q are available on the SEC’s website at https://www.sec.gov. The Fund’s Forms N-PORT and 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.

44 | 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 Trustees	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**	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee (November 2019-present).	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	158	Current: Trustee, Purpose Investments Funds (2013-Present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).
Angela Brock-Kyle (1959)	Trustee and Member of the Audit Committee (2016-present); and Member of the Governance and Nominating Committee (2017-present).	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	157	None.
Donald A. Chubb, Jr. (1946)	Trustee (November 2019-present).	Current: Retired. Former: Business broker and manager of commercial real estate, Griffith & Blair, Inc. (1997-2017).	157	Former: Midland Care, Inc. (2011-2016).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 45

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

Name, Address* and Year of Birth of Trustees	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**	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - continued
Jerry B. Farley (1946)	Trustee (November 2019-present).	Current: President, Washburn University (1997-present).	157	Current: CoreFirst Bank & Trust (2000-Present). Former: Westar Energy, Inc. (2004-2018).
Roman Friedrich III (1946)	Trustee (November 2019-present).	Current: Founder and Managing Partner, Roman Friedrich & Company (1998-present).	157	Former: Zincore Metals, Inc. (2009-January 2019).
Thomas F. Lydon, Jr. (1960)	Trustee, Member of the Audit Committee (2005-present); and Chairman and Member of the Governance and Nominating Committee (2017-present).	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	157	Current: US Global Investors (GROW) (1995-present); and Harvest Volatility Edge Trust (3) (2017-present).
Ronald A. Nyberg (1953)	Trustee (November 2019-present).	Current: Partner, Momkus LLC (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	158	Current: PPM Funds (9) (2018 - present); Edward-Elmhurst Healthcare System (2012-present); Western Asset Inflation-Linked Opportunities & Income Fund (2004-present); Western Asset Inflation-Linked Income Fund (2003-present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).

46 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth of Trustees	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**	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Sandra G. Sponem (1958)	Trustee and Member of the Audit Committee (2016-present); Member of the Governance and Nominating Committee (2017-present); Chairwoman (January 2019-present) and Chairwoman of Audit Committee (November 2019-present).	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-2017).	157	Current: SPDR Series Trust (78) (2018-present); SPDR Index Shares Funds (31) (2018-present); SSGA Active Trust (12) (2018-present); and SSGA Master Trust (1) (2018-present).
Ronald E. Toupin, Jr. (1958)	Trustee (November 2019-present).	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	157	Current: Western Asset Inflation-Linked Opportunities & Income Fund (2004-present); Western Asset Inflation-Linked Income Fund (2003-present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 47

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

Name, Address* and Year of Birth of Trustees	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**	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer (November 2019-present).	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer (2017- 2018); President, certain other funds in the Fund Complex (2017-November 2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	157	None.

48 | 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
Brian E. Binder (1972)	President and Chief Executive Officer (November 2019-present)	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President and Chief Executive Officer, Guggenheim Funds Investment Advisors, LLC and Security Investors, LLC (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary (2017-present)	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).
Michael P. Megaris (1984)	Assistant Secretary (2018-present)	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present)	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 49

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
Margaux Misantone (1978)	AML Officer (2017-present)	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Director, Guggenheim Investments (2013-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).
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).
William Rehder (1967)	Assistant Vice President (2018-present)	Current: Managing Director, Guggenheim Investments (2002-present).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: Chief Financial Officer, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and Chief Compliance Officer, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); Chief Financial Officer and Treasurer, Van Kampen Funds (1996-2004).

50 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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
Jon Szafran (1989)	Assistant Treasurer (2017-present)	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014-2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	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.
***	Certain 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.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.
*****	Each Trustee serves an indefinite term, until his or her successor is elected and qualified.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 51

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

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

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

Our Commitment to You

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

The Information We Collect About You

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

How We Handle Your Personal Information

The legal basis for using your information as set out in this Privacy Notice is as follows: (a) use of your personal data is necessary to perform our obligations under any contract with you (such as a contract for us to provide financial services to you); or (b) where use of your personal data is not necessary for performance of a contract, use of your personal data is necessary for our

52 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

legitimate interests or the legitimate interests of others (for example, to enforce the legal terms governing our services, operate and market our website and other services we offer, ensure safe environments for our personnel and others, make and receive payments, prevent fraud and to know the customer to whom we are providing the services). Some processing is done to comply with applicable law.

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

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

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

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

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

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

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

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

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

We provide information about you to companies and individuals not affiliated with Guggenheim Investments to complete certain transactions or account changes, or to perform services for us related to your account. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we must provide certain information about you to that company to complete the transaction. We provide the third party with only the information necessary to carry out its responsibilities and only for that purpose. And we require these third

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 53

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

parties to treat your private information with the same high degree of confidentiality that we do. To alert you to other Guggenheim Investments products and services, we share your information within our family of affiliated companies. You may limit our sharing with affiliated companies as set out below. We may also share information with any successor to all or part of our business, or in connection with steps leading up to a merger or acquisition. For example, if part of our business was sold we may give customer information as part of that transaction. We may also share information about you with your consent.

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

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

Opt-Out Provisions and Your Data Choices

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

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

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

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

54 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

How We Protect Privacy Online

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

How We Safeguard Your Personal Information and Data Retention

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

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

International Visitors

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

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

We’ll Keep You Informed

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 55

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

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

56 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

9.30.2019

Rydex Funds Semi-Annual Report

Guggenheim Alternatives Funds

Guggenheim Long Short Equity Fund

Rydex International Equity Funds

Rydex Emerging Markets 2x Strategy Fund

Rydex Inverse Emerging Markets 2x Strategy Fund

Rydex Fixed Income Fund

Rydex Emerging Markets Bond Strategy Fund

Beginning on January 1, 2021, paper copies of the Funds’ annual and semi-annual shareholder reports may no longer be sent by mail, unless you specifically request paper copies of the reports from a fund or from your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. At any time, you may elect to receive reports and other communications from a fund electronically by calling 800.820.0888, going to GuggenheimInvestments.com/myaccount, or by contacting your financial intermediary.

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

GuggenheimInvestments.com RSTF-SEMI-0919x0320

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	6
ABOUT SHAREHOLDERS’ FUND EXPENSES	7
LONG SHORT EQUITY FUND	10
EMERGING MARKETS 2x STRATEGY FUND	29
INVERSE EMERGING MARKETS 2x STRATEGY FUND	38
EMERGING MARKETS BOND STRATEGY FUND	45
NOTES TO FINANCIAL STATEMENTS	52
OTHER INFORMATION	66
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	69
GUGGENHEIM INVESTMENTS PRIVACY NOTICE	74

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 1

September 30, 2019

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 “Fund” or “Funds”) for the six-month period ended September 30, 2019.

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

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

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

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

Sincerely,

Security Investors, LLC
October 31, 2019

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

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/ or legal professional regarding your specific situation.

Alternative funds may not be suitable for all investors because of the sophisticated and aggressive investment techniques the funds employ, such as leverage, derivatives and short selling. ● The more you invest in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● The use of short selling involves increased risks and costs. You risk paying more for a security than you received from its sale. Theoretically, stocks sold short have the risk of unlimited losses. ● The use of derivatives such as futures, options and swap agreements may expose an investment to additional risks that it would not be subject to if you invested directly in the securities underlying those derivatives. ● Additionally, certain alternative strategies tied to hard assets such as commodities, currencies and real estate, may be subject to greater volatility as they may be affected by overall market movements, changes in interest rates or factors affecting a particular industry, commodity or currency, such as droughts, floods, weather, livestock disease, embargos, tariff s and international economic, political and regulatory developments. ● No investment strategy can guarantee a return in a declining market. Additionally, an investor could lose all or a substantial amount of their investment.

2 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

September 30, 2019

The Long Short Equity Fund may not be suitable for all investors. ●The Fund is subject to the risk that the Advisor’s use of a momentum-driven investment strategy may cause the Fund to underperform other types of mutual funds that use different investment strategies during periods when momentum investing is out of favor. ●It is possible that the stocks the Fund holds long will decline in value at the same time that the stocks or indices being shorted increase in value, thereby increasing potential losses to the Fund. ●The Fund’s loss on a short sale is potentially unlimited because there is no upper limit on the price a borrowed security could attain. ● The more the Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ●The use of derivatives, such as futures, options and swap agreements, may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. ●The Fund may invest in American Depositary Receipts (“ADRs”) therefore subjecting the value of the Fund’s portfolio to fluctuations in foreign exchange rates. ● This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a more diversified fund. See the prospectus for more information on these and additional risks.

Inverse and leveraged Funds are not suitable for all investors. ● These Funds should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking daily leveraged investment results, (c) understand the risk of shorting, and (d) intend to actively monitor and manage their investments. ● The more a Fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. ● Inverse Funds involve certain risks, which include increased volatility due to the Funds’ possible use of short sales of securities and derivatives, such as options and futures. ● The Funds’ use of derivatives, such as futures, options and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. ● Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. ● Leveraged and inverse Funds seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the Funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those Funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse Funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. For those Funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. The Funds rebalance their portfolios on a daily basis, increasing exposure in response to that day’s gains or reducing exposure in response to that day’s losses. Daily rebalancing will impair a fund’s performance if the benchmark experiences volatility. Investors should monitor their leveraged and inverse Funds’ holdings consistent with their strategies, as frequently as daily. ● For more on these and other risks, please read the prospectus. ● The leveraged and Inverse Emerging Markets Funds’ investments in developed and emerging foreign markets may increase the Funds’ volatility due to the impact of diplomatic, political or economic developments on the country in question. ● Additionally, the Funds’ direct and indirect exposure to foreign currencies subjects the Funds to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currencies. ● A Fund’s investment in the securities of non-U.S. companies in the form of American Depositary Receipts (ADRs) poses special risks associated with international investing, including fluctuating exchange rates, government regulations and differences in liquidity, which may affect the volatility and performance of a fund.

The Emerging Markets Bond Strategy Fund may not be suitable for all investors. Investments in securities, in general, are subject to market risks that may cause their prices to fluctuate over time. An investment in the Fund may lose money. ● The Fund’s investments in bonds and financial instruments that in combination have economic characteristics similar to emerging markets bonds carries additional risks when compared to investing in U.S. securities, due to the impact of diplomatic, political or economic developments in the country in question. ● The Fund’s investments in derivatives, including credit default swaps, may pose risks in addition to those associated with investing directly in securities or other investments, including illiquidity of the derivatives, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, lack of availability and counterparty risk. To the extent the Fund invests in derivatives to seek to hedge risk or limit leveraged exposure created by other investments, there is no guarantee that such hedging strategies will be effective at managing risk or limiting exposure to leveraged investments. ● The Fund’s exposure to high yield securities may subject the Fund to greater volatility. ● The Fund’s market value will change in response to interest rate changes and market conditions among other factors. In general, bond prices rise when interest rates fall and vice versa. ● The Fund’s investments in bank obligations may expose it to adverse developments in or related to the banking industry. ● The Funds use of leverage will exaggerate the effect on net asset value of any increase or decrease in the market value of the Fund’s portfolio. ● The Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. ● The Fund’s investments in other investment vehicles subject the Fund to those risks and expenses affecting the investment vehicle. ● This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. ● See the prospectus for more information on these and other risks.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 3

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2019

Economic data has been mixed over the past few months. On the positive side, we saw a pickup in the housing market as measured by housing starts and home sales, which could be a delayed response to lower mortgage rates. Industrial production had the strongest month-over-month gain in a year, partially boosted by an increase in oil production in Hurricane Barry’s wake. The unemployment rate fell to a 50-year low of 3.5% in September 2019, despite a continued moderation in payroll gains.

On the negative side, the Institute for Supply Management (“ISM”) Manufacturing Index plunged to the weakest reading since June 2009. The ISM Non-Manufacturing Index also came in well below expectations, the lowest since August 2016. Within both the manufacturing and non-manufacturing ISM indexes, analysts look at the employment component of the survey for an early read on other labor market indicators. Here we find more cause for concern: The non-manufacturing survey’s employment component is now barely above 50 while the manufacturing employment sub-index stands at 46.3, well into contraction territory. Combined, the outlook for output and hiring has dimmed, signaling trouble ahead for consumers.

Retail sales have been steady, but Commerce Department data showed that total consumer spending on goods and services increased only 0.1% month-over-month in August 2019, the smallest gain in six months. It is hard to identify the primary reason why consumers may already be turning more conservative on spending. Income growth looks steady, the equity market is higher year-to-date, and rates are lower, all of which should be boosting consumer confidence. Sentiment surveys, however, show that fewer consumers believe now is a good time to buy homes, vehicles, and household durables, and headline consumer confidence measures have ticked down. We believe trade policy and political concerns are weighing on sentiment, and these headwinds are set to ramp up further. Additional U.S. tariffs on China are due to take effect on December 15, 2019 and the U.S. House of Representatives is pressing forward with its impeachment inquiry into President Trump.

Guggenheim’s dashboard of U.S. recession indicators continues to point to a recession beginning as early as the first half of 2020, and we think the economic data is corroborating this view. Two of the more notable indicators pointing to high recession risk are the three-month/10-year U.S. Treasury yield curve, which has been inverted for 16 consecutive weeks through period end, and the Leading Economic Indicators Index which has slowed from a year-over-year growth rate of 6.6% in September 2018 to 1.1% as of August 2019. The indicators Guggenheim tracks as part of our recession probability model indicate a nearly 50% chance that a recession will come before mid-2020, and a 70% chance that it will arrive by mid-2021.

Over the period, the U.S. Treasury curve continued its overall flattening trend, as the difference between the two-year U.S. Treasury and 10-year U.S. Treasury narrowed to 5 basis points. Equity markets remained volatile, buoyed by a 25 basis point cut in July and September 2019 by the U.S. Federal Reserve (the “Fed”) and relatively strong U.S. economic data, but weighed down by trade war uncertainty and fears of a global slowdown.

With downside risks growing, markets have become more sensitive to the Fed’s communications about the future stance of monetary policy. Despite the two rate cuts, Fed policymakers are deeply divided. It is still unclear whether the Fed will deliver the aggressive and preemptive policy action that would prolong the current expansion.

As it relates to risk-taking, we are not confident that the Fed would succeed in easing credit conditions if conditions were to tighten materially. The Fed may act too late, or its actions may have little impact given that low rates this year have largely failed to stimulate growth. With credit spreads still relatively tight on a historical basis, we believe it is prudent to remain up in quality as we await better opportunities to deploy capital in riskier credit sectors in the coming downturn.

For the six-month period ended September 30, 2019, the Standard & Poor’s 500^® (“S&P 500”) Index^* returned 6.08%. The MSCI Europe-Australasia-Far East (“EAFE”) Index^* returned 2.93%. The return of the MSCI Emerging Markets Index^* was -3.40%.

In the bond market, the Bloomberg Barclays U.S. Aggregate Bond Index^* posted a 5.42% return for the period, while the Bloomberg Barclays U.S. Corporate High Yield Index^* returned 3.87%. The return of the ICE Bank of America (“BofA”) Merrill Lynch 3-Month U.S. Treasury Bill Index^* was 1.20% 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.

4 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2019

^*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.

BNY Mellon Emerging Markets 50 ADR Index is capitalization-weighted and designed to track the performance of approximately 50 emerging market-based depositary receipts.

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

ICE BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index tracks the performance of U.S. dollar-denominated emerging market and crossover sovereign debt publicly issued in the eurobond or U.S. domestic market. Qualifying countries must have a BBB1 or lower foreign currency long-term sovereign debt rating (based on an average of Moody’s, S&P and Fitch). Countries that are not rated, or that are rated “D” or “SD” by one or several rating agencies qualify for inclusion in the index but individual non-performing securities are removed. Qualifying securities must have at least one year remaining term to final maturity, at least 18 months to maturity at point of issuance, a fixed or floating coupon and a minimum amount outstanding of $250 million. Local currency debt is excluded from the Index. Index constituents are capitalization-weighted based on their current amount outstanding times the market price plus accrued interest.

Morningstar Long/Short Equity Category Average is an average return of the funds in the Morningstar Long/Short Equity Category. The categories assist investors and investment professionals in making meaningful comparisons between funds, making it easier to build well-diversified portfolios, assess potential risk, and identify top-performing funds.

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 5

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

The Rydex Emerging Markets 2x Strategy Fund and Rydex Inverse Emerging Markets 2x Strategy Fund are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

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

An Example of Compounding

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

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

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

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

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

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

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

6 | 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, 2019 and ending September 30, 2019.

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 | 7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Long Short Equity Fund
A-Class	1.77%	(2.22%)	$ 1,000.00	$ 977.80	$ 8.78
C-Class	2.52%	(2.53%)	1,000.00	974.70	12.47
P-Class	1.77%	(2.15%)	1,000.00	978.50	8.78
Institutional Class	1.52%	(2.05%)	1,000.00	979.50	7.54
Emerging Markets 2x Strategy Fund
A-Class	1.85%	(13.67%)	1,000.00	863.30	8.64
C-Class	2.59%	(13.98%)	1,000.00	860.20	12.08
H-Class	1.85%	(13.66%)	1,000.00	863.40	8.64
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.91%	7.20%	1,000.00	1,072.00	9.92
C-Class	2.92%	6.50%	1,000.00	1,065.00	15.12
H-Class	1.86%	7.28%	1,000.00	1,072.80	9.66
Emerging Markets Bond Strategy Fund
A-Class	1.67%	3.58%	1,000.00	1,035.80	8.52
C-Class	2.41%	3.18%	1,000.00	1,031.80	12.28
H-Class	1.66%	3.57%	1,000.00	1,035.70	8.47

8 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2019	Ending Account Value September 30, 2019	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Long Short Equity Fund
A-Class	1.77%	5.00%	$ 1,000.00	$ 1,016.19	$ 8.95
C-Class	2.52%	5.00%	1,000.00	1,012.43	12.71
P-Class	1.77%	5.00%	1,000.00	1,016.19	8.95
Institutional Class	1.52%	5.00%	1,000.00	1,017.45	7.69
Emerging Markets 2x Strategy Fund
A-Class	1.85%	5.00%	1,000.00	1,015.79	9.35
C-Class	2.59%	5.00%	1,000.00	1,012.08	13.06
H-Class	1.85%	5.00%	1,000.00	1,015.79	9.35
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.91%	5.00%	1,000.00	1,015.49	9.65
C-Class	2.92%	5.00%	1,000.00	1,010.43	14.72
H-Class	1.86%	5.00%	1,000.00	1,015.74	9.40
Emerging Markets Bond 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

1	Annualized and excludes expenses of the underlying funds in which the Funds invest, if any.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2019 to September 30, 2019.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 9

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.

Inception Dates:
Institutional Class	November 30, 2011
A-Class	March 31, 2004
C-Class	March 22, 2002
P-Class	March 22, 2002

Ten Largest Holdings (% of Total Net Assets)
Exxon Mobil Corp.	1.3%
Chevron Corp.	1.3%
Verizon Communications, Inc.	1.3%
ONEOK, Inc.	1.2%
Archer-Daniels-Midland Co.	1.2%
Equity Commonwealth	1.2%
Apartment Investment & Management Co. — Class A	1.2%
Amgen, Inc.	1.2%
Merck & Company, Inc.	1.2%
Kinder Morgan, Inc.	1.2%
Top Ten Total	12.3%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

10 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	10 Year
A-Class Shares	(2.22%)	(7.68%)	1.94%	3.56%
A-Class Shares with sales charge‡	(6.88%)	(12.06%)	0.96%	3.06%
C-Class Shares	(2.53%)	(8.32%)	1.20%	2.79%
C-Class Shares with CDSC§	(3.51%)	(9.22%)	1.20%	2.79%
P-Class Shares	(2.15%)	(7.60%)	1.96%	3.57%
Morningstar Long/Short Equity Category Average	1.03%	(1.99%)	2.15%	4.47%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%
	6 Month†	1 Year	5 Year	Since Inception (11/30/11)
Institutional Class Shares	(2.05%)	(7.39%)	2.22%	3.77%
Morningstar Long/Short Equity Category Average	1.03%	(1.99%)	2.15%	4.46%
S&P 500 Index	6.08%	4.25%	10.84%	14,10%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The Morningstar Long/Short Equity Category Average and S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns. The Morningstar Long/Short Equity Category Average is the equal-weighted, simple average daily return for all funds in the Morningstar Long/Short Equity Category.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 11

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Value
COMMON STOCKS† - 99.3%
Consumer, Non-cyclical - 34.0%
Archer-Daniels-Midland Co.		5,788	$	237,713
Amgen, Inc.		1,212		234,534
Merck & Company, Inc.		2,765		232,758
McKesson Corp.		1,525		208,406
PepsiCo, Inc.1		1,485		203,593
Gilead Sciences, Inc.1		3,175		201,232
Pfizer, Inc.		5,428		195,028
Molson Coors Brewing Co. — Class B1		3,281		188,658
Ingredion, Inc.1		2,200		179,828
Zimmer Biomet Holdings, Inc.1		1,286		176,529
CVS Health Corp.1		2,693		169,848
Becton Dickinson and Co.		664		167,965
Kimberly-Clark Corp.		1,111		157,818
Johnson & Johnson1		1,200		155,256
Pilgrim’s Pride Corp.*,1		4,645		148,849
Colgate-Palmolive Co.1		1,988		146,138
Philip Morris International, Inc.1		1,793		136,142
Sysco Corp.1		1,709		135,695
Medtronic plc		1,233		133,929
Thermo Fisher Scientific, Inc.1		457		133,110
Cal-Maine Foods, Inc.		3,308		132,171
Baxter International, Inc.		1,502		131,380
Eli Lilly & Co.		1,098		122,789
Tyson Foods, Inc. — Class A		1,409		121,371
H&R Block, Inc.		5,083		120,060
Hill-Rom Holdings, Inc.		1,129		118,805
Hologic, Inc.*,1		2,224		112,290
Darling Ingredients, Inc.*		5,827		111,471
General Mills, Inc.		2,006		110,571
Kroger Co.1		4,181		107,786
AMERCO		259		101,020
Hormel Foods Corp.		2,169		94,850
Post Holdings, Inc.*		858		90,811
Biogen, Inc.*,1		387		90,101
AmerisourceBergen Corp. — Class A		1,031		84,882
Bio-Rad Laboratories, Inc. — Class A*		253		84,183
Cardinal Health, Inc.1		1,683		79,421
UnitedHealth Group, Inc.		348		75,628
Jazz Pharmaceuticals plc*		575		73,680
JM Smucker Co.		657		72,283
ManpowerGroup, Inc.		851		71,688
Integer Holdings Corp.*		944		71,329
Regeneron Pharmaceuticals, Inc.*		252		69,905
Lamb Weston Holdings, Inc.		922		67,048
Kellogg Co.		975		62,741
US Foods Holding Corp.*		1,513		62,184
Campbell Soup Co.		1,295		60,762
STERIS plc		417		60,252
Procter & Gamble Co.1		473		58,832
Alexion Pharmaceuticals, Inc.*		597		58,470
Central Garden & Pet Co. — Class A*		2,024		56,115
Herbalife Nutrition Ltd.*		1,446		54,746
TrueBlue, Inc.*		2,425		51,168
Innoviva, Inc.*		4,821		50,813
Mondelez International, Inc. — Class A		878		48,571
Humana, Inc.1		187		47,810
Coca-Cola Co.		877		47,744
Kraft Heinz Co.1		1,646		45,981
Abbott Laboratories		548		45,851
B&G Foods, Inc.2		2,381		45,025
Bristol-Myers Squibb Co.		863		43,763
Clorox Co.		284		43,131
Danaher Corp.		266		38,418
Total Consumer, Non-cyclical				6,840,929
Industrial - 12.5%
United Parcel Service, Inc. — Class B1		1,801		215,796
FedEx Corp.1		1,173		170,753
Landstar System, Inc.		1,264		142,301
CSX Corp.1		2,006		138,956
Cummins, Inc.1		800		130,136
Norfolk Southern Corp.1		654		117,498
Knight-Swift Transportation Holdings, Inc.		2,856		103,673
Union Pacific Corp.1		618		100,104
Forward Air Corp.		1,518		96,727
Werner Enterprises, Inc.		2,664		94,039
Old Dominion Freight Line, Inc.		538		91,444
Schneider National, Inc. — Class B		4,007		87,032
Waters Corp.*,1		374		83,488
Agilent Technologies, Inc.		1,078		82,607
Kennametal, Inc.		2,578		79,248
Echo Global Logistics, Inc.*		3,279		74,269
Marten Transport Ltd.		3,444		71,566
Kansas City Southern1		527		70,096
Heartland Express, Inc.		3,170		68,187
Saia, Inc.*		704		65,965
J.B. Hunt Transport Services, Inc.1		560		61,964
Avnet, Inc.		1,354		60,233
Caterpillar, Inc.1		451		56,966
Oshkosh Corp.		731		55,409
Vishay Intertechnology, Inc.		2,987		50,570
Parker-Hannifin Corp.1		275		49,668
Expeditors International of Washington, Inc.		656		48,734
Textron, Inc.1		934		45,728
Total Industrial				2,513,157
Energy - 11.2%
Exxon Mobil Corp.		3,835		270,789
Chevron Corp.		2,179		258,429
ONEOK, Inc.1		3,356		247,304
Kinder Morgan, Inc.		11,273		232,336
Phillips 661		1,867		191,181
Valero Energy Corp.1		2,144		182,754
HollyFrontier Corp.1		3,295		176,744
Marathon Petroleum Corp.		2,785		169,189
Williams Companies, Inc.1		6,401		154,008
Delek US Holdings, Inc.		3,616		131,261
Targa Resources Corp.		1,799		72,266
Renewable Energy Group, Inc.*,2		4,130		61,971
Cheniere Energy, Inc.*		950		59,907

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Value
PBF Energy, Inc. — Class A		1,021	$	27,761
Unit Corp.*		6,949		23,488
Total Energy				2,259,388
Communications - 10.8%
Verizon Communications, Inc.		4,217		254,538
AT&T, Inc.1		5,591		211,563
Alphabet, Inc. — Class C*		161		196,259
Omnicom Group, Inc.1		2,477		193,949
Cogent Communications Holdings, Inc.		2,430		133,893
AMC Networks, Inc. — Class A*,1		2,654		130,471
Shenandoah Telecommunications Co.		3,952		125,555
Facebook, Inc. — Class A*,1		666		118,601
Discovery, Inc. — Class A*,1		4,452		118,557
Scholastic Corp.		2,707		102,216
Comcast Corp. — Class A1		2,198		99,086
John Wiley & Sons, Inc. — Class A		2,087		91,703
News Corp. — Class A		5,145		71,618
Amazon.com, Inc.*		40		69,437
ATN International, Inc.		1,183		69,052
Meredith Corp.		1,728		63,349
Walt Disney Co.1		325		42,354
TEGNA, Inc.		2,597		40,331
Cisco Systems, Inc.		790		39,034
Total Communications				2,171,566
Financial - 9.6%
Equity Commonwealth REIT1		6,875		235,469
Apartment Investment & Management Co. — Class A REIT1		4,500		234,630
Medical Properties Trust, Inc. REIT1		11,169		218,466
HCP, Inc. REIT1		5,593		199,278
JPMorgan Chase & Co.		1,061		124,869
Hartford Financial Services Group, Inc.1		1,713		103,825
Deluxe Corp.		1,731		85,096
Host Hotels & Resorts, Inc. REIT1		4,811		83,182
Summit Hotel Properties, Inc. REIT		6,940		80,504
Northern Trust Corp.1		830		77,456
Urban Edge Properties REIT		2,692		53,275
MetLife, Inc.		1,096		51,687
Principal Financial Group, Inc.		892		50,969
State Street Corp.		811		48,003
Visa, Inc. — Class A		279		47,991
Bank of America Corp.		1,600		46,672
Bank of New York Mellon Corp.		1,017		45,979
Berkshire Hathaway, Inc. — Class B*		219		45,556
Citigroup, Inc.		635		43,866
Comerica, Inc.		658		43,421
Total Financial				1,920,194
Consumer, Cyclical - 8.7%
Delta Air Lines, Inc.		3,031		174,586
Southwest Airlines Co.1		2,845		153,658
United Airlines Holdings, Inc.*,1		1,616		142,871
Allison Transmission Holdings, Inc.1		2,849		134,046
World Fuel Services Corp.		2,956		118,063
JetBlue Airways Corp.*,1		6,918		115,876
Toll Brothers, Inc.		2,286		93,840
BorgWarner, Inc.		2,449		89,829
Alaska Air Group, Inc.		1,371		88,992
Walgreens Boots Alliance, Inc.		1,370		75,775
General Motors Co.		1,931		72,374
Brinker International, Inc.		1,690		72,112
Lear Corp.1		582		68,618
PACCAR, Inc.		957		66,999
DR Horton, Inc.		1,069		56,347
Autoliv, Inc.2		656		51,745
Home Depot, Inc.		212		49,188
Walmart, Inc.		397		47,116
Starbucks Corp.		498		44,033
Lions Gate Entertainment Corp. — Class A*		3,949		36,528
Total Consumer, Cyclical				1,752,596
Utilities - 8.6%
Ameren Corp.		2,580		206,529
Pinnacle West Capital Corp.1		2,099		203,750
Portland General Electric Co.		3,471		195,660
FirstEnergy Corp.1		3,966		191,280
PPL Corp.1		5,867		184,752
National Fuel Gas Co.1		3,447		161,733
Exelon Corp.		3,030		146,379
Southern Co.		1,479		91,358
Public Service Enterprise Group, Inc.		1,430		88,775
OGE Energy Corp.		1,941		88,083
Avista Corp.		1,787		86,562
AES Corp.		5,250		85,785
Total Utilities				1,730,646
Technology - 3.5%
Apple, Inc.		794		177,832
Microsoft Corp.1		1,227		170,590
Skyworks Solutions, Inc.		1,267		100,410
Oracle Corp.1		1,571		86,452
Intel Corp.1		1,573		81,057
Diodes, Inc.*		1,227		49,264
International Business Machines Corp.		305		44,353
Total Technology				709,958
Basic Materials - 0.4%
Westlake Chemical Corp.1		669		43,833
Domtar Corp.		1,106		39,606
Total Basic Materials				83,439
Total Common Stocks
(Cost $18,851,523)				19,981,873
MONEY MARKET FUND† - 3.1%
Invesco Short-Term InvestmentsTrust Treasury ObligationsPortfolio Institutional Class 1.86%3		633,697		633,697
Total Money Market Fund
(Cost $633,697)				633,697

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,4 - 0.6%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%3		120,823	$	120,823
Total Securities Lending Collateral
(Cost $120,823)				120,823
Total Investments - 103.0%
(Cost $19,606,043)			$	20,736,393
Other Assets & Liabilities, net - (3.0)%				(608,855	)
Total Net Assets - 100.0%			$	20,127,538

Custom Basket Swap Agreements
Counterparty	Reference Obligation	Financing Rate Pay (Receive)			Payment Frequency	Maturity Date	Notional Amount		Value and Unrealized Appreciation (Depreciation)
OTC Custom Basket Swap Agreements††
Goldman Sachs International	GS Equity Custom Basket		2.28	%	At Maturity	05/06/24	$	3,807,571	$	109,564
Morgan Stanley Capital Services LLC	MS Equity Custom Basket		2.25	%	At Maturity	03/27/24		3,807,734		71,589
							$	7,615,305	$	181,153
OTC Custom Basket Swap Agreements Sold Short††
Morgan Stanley Capital Services LLC	MS Equity Custom Basket		(1.55	)%	At Maturity	03/27/24	$	8,561,526	$	(404,810	)
Goldman Sachs International	GS Equity Custom Basket		(1.63	)%	At Maturity	05/06/24		8,238,573		(175,207	)
							$	16,800,099	$	(580,017	)

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation
GS EQUITY LONG CUSTOM BASKET
Saia, Inc.*		255		0.63	%	$	8,688
HollyFrontier Corp.		609		0.86	%		7,990
Marathon Petroleum Corp.		515		0.82	%		6,602
United Parcel Service, Inc. — Class B		333		1.05	%		6,597
Phillips 66		345		0.93	%		6,103
ONEOK, Inc.		620		1.20	%		4,941
J.B. Hunt Transport Services, Inc.		202		0.59	%		4,593
CVS Health Corp.		498		0.82	%		4,532
World Fuel Services Corp.		643		0.67	%		4,353
Pilgrim’s Pride Corp.*		859		0.72	%		4,308
Apple, Inc.		146		0.86	%		4,257
HCP, Inc.		1,034		0.97	%		4,239
Amgen, Inc.		224		1.14	%		4,231
Schneider National, Inc. — Class B		1,090		0.62	%		4,098
Alphabet, Inc. — Class C*		29		0.93	%		4,068
Molson Coors Brewing Co. — Class B		1,153		1.74	%		4,061
FirstEnergy Corp.		733		0.93	%		4,017
Zimmer Biomet Holdings, Inc.		237		0.85	%		3,979
Valero Energy Corp.		396		0.89	%		3,516
AT&T, Inc.		559		0.56	%		3,203
Medical Properties Trust, Inc.		2,065		1.06	%		3,180
Old Dominion Freight Line, Inc.		99		0.44	%		2,894
Werner Enterprises, Inc.		492		0.46	%		2,863
Knight-Swift Transportation Holdings, Inc.		528		0.50	%		2,767
Verizon Communications, Inc.		780		1.24	%		2,753
Baxter International, Inc.		277		0.64	%		2,720
Deluxe Corp.		320		0.41	%		2,614
Heartland Express, Inc.		930		0.53	%		2,585
Landstar System, Inc.		233		0.69	%		2,547
Medtronic plc		228		0.65	%		2,522
Ameren Corp.		477		1.00	%		2,442
Scholastic Corp.		500		0.50	%		2,365
Kansas City Southern		155		0.54	%		2,135

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation
Sysco Corp.		316		0.66	%	$	2,098
News Corp. — Class A		951		0.35	%		2,016
Cardinal Health, Inc.		572		0.71	%		1,982
Southern Co.		273		0.44	%		1,956
Becton Dickinson and Co.		122		0.81	%		1,945
Toll Brothers, Inc.		422		0.45	%		1,904
Hartford Financial Services Group, Inc.		316		0.50	%		1,851
Marten Transport Ltd.		636		0.35	%		1,838
Southwest Airlines Co.		526		0.75	%		1,804
United Airlines Holdings, Inc.*		298		0.69	%		1,681
Allison Transmission Holdings, Inc.		526		0.65	%		1,631
Microsoft Corp.		226		0.83	%		1,566
Kimberly-Clark Corp.		205		0.76	%		1,525
Delta Air Lines, Inc.		560		0.85	%		1,523
Tyson Foods, Inc. — Class A		385		0.87	%		1,475
Forward Air Corp.		280		0.47	%		1,456
DR Horton, Inc.		197		0.27	%		1,452
Portland General Electric Co.		642		0.95	%		1,445
Diodes, Inc.*		227		0.24	%		1,419
JPMorgan Chase & Co.		196		0.61	%		1,374
Echo Global Logistics, Inc.*		606		0.36	%		1,357
Intel Corp.		290		0.39	%		1,357
Kellogg Co.		180		0.30	%		1,352
Home Depot, Inc.		39		0.24	%		1,326
Procter & Gamble Co.		87		0.28	%		1,305
Agilent Technologies, Inc.		199		0.40	%		1,301
Campbell Soup Co.		239		0.29	%		1,268
McKesson Corp.		436		1.56	%		1,213
US Foods Holding Corp.*		279		0.30	%		1,205
Skyworks Solutions, Inc.		228		0.47	%		1,204
Bristol-Myers Squibb Co.		159		0.21	%		1,149
Hologic, Inc.*		411		0.54	%		1,122
PepsiCo, Inc.		274		0.99	%		1,069
Waters Corp.*		69		0.40	%		1,058
Urban Edge Properties		497		0.26	%		1,054
Alaska Air Group, Inc.		253		0.43	%		1,050
General Mills, Inc.		371		0.54	%		1,017
Archer-Daniels-Midland Co.		1,070		1.15	%		963
PPL Corp.		1,085		0.90	%		955
Central Garden & Pet Co. — Class A*		374		0.27	%		952
Hormel Foods Corp.		401		0.46	%		899
OGE Energy Corp.		359		0.43	%		890
Kroger Co.		773		0.52	%		866
Eli Lilly & Co.		203		0.60	%		861
Brinker International, Inc.		312		0.35	%		861
	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Apartment Investment & Management Co. — Class A		832		1.14	%	$	840
Equity Commonwealth		1,271		1.14	%		839
Walmart, Inc.		73		0.23	%		784
Renewable Energy Group, Inc.*		763		0.30	%		774
PBF Energy, Inc. — Class A		731		0.52	%		724
Autoliv, Inc.		121		0.25	%		705
Lamb Weston Holdings, Inc.		170		0.32	%		693
Avista Corp.		330		0.42	%		682
Parker-Hannifin Corp.		50		0.24	%		677
Northern Trust Corp.		153		0.37	%		673
Ingredion, Inc.		407		0.87	%		615
Merck & Company, Inc.		511		1.13	%		613
Vishay Intertechnology, Inc.		552		0.25	%		596
Targa Resources Corp.		332		0.35	%		561
Walgreens Boots Alliance, Inc.		253		0.37	%		558
Delek US Holdings, Inc.		668		0.64	%		468
Coca-Cola Co.		162		0.23	%		458
Humana, Inc.		34		0.23	%		424
Public Service Enterprise Group, Inc.		264		0.43	%		415
TEGNA, Inc.		649		0.26	%		396
Westlake Chemical Corp.		123		0.21	%		367
Hill-Rom Holdings, Inc.		208		0.57	%		314
Bank of America Corp.		295		0.23	%		274
Biogen, Inc.*		71		0.43	%		266
Pinnacle West Capital Corp.		388		0.99	%		264
Abbott Laboratories		101		0.22	%		258
Mondelez International, Inc. — Class A		162		0.24	%		215
Thermo Fisher Scientific, Inc.		84		0.64	%		177
Oracle Corp.		290		0.42	%		133
Danaher Corp.		49		0.19	%		95
Colgate-Palmolive Co.		367		0.71	%		66
Berkshire Hathaway, Inc. — Class B*		40		0.22	%		56
Textron, Inc.		172		0.22	%		52
PACCAR, Inc.		177		0.33	%		39
Post Holdings, Inc.*		158		0.44	%		32
Facebook, Inc. — Class A*		123		0.58	%		(2	)
State Street Corp.		150		0.23	%		(11	)
Avnet, Inc.		250		0.29	%		(21	)
AES Corp.		971		0.42	%		(39	)
Jazz Pharmaceuticals plc*		106		0.36	%		(43	)
Bank of New York Mellon Corp.		188		0.22	%		(54	)
AMERCO		47		0.48	%		(59	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Depreciation
Caterpillar, Inc.		83		0.28	%	$	(81	)
Expeditors International of Washington, Inc.		121		0.24	%		(107	)
Summit Hotel Properties, Inc.		1,283		0.39	%		(143	)
TrueBlue, Inc.*		448		0.25	%		(148	)
Clorox Co.		52		0.21	%		(222	)
Cummins, Inc.		147		0.63	%		(226	)
Starbucks Corp.		92		0.21	%		(229	)
STERIS plc		77		0.29	%		(234	)
Visa, Inc. — Class A		32		0.14	%		(255	)
Citigroup, Inc.		117		0.21	%		(272	)
MetLife, Inc.		202		0.25	%		(281	)
Walt Disney Co.		60		0.21	%		(286	)
International Business Machines Corp.		56		0.21	%		(322	)
Oshkosh Corp.		135		0.27	%		(323	)
Darling Ingredients, Inc.*		1,077		0.54	%		(334	)
Kinder Morgan, Inc.		2,084		1.13	%		(354	)
Integer Holdings Corp.*		174		0.35	%		(365	)
Omnicom Group, Inc.		458		0.94	%		(417	)
Principal Financial Group, Inc.		165		0.25	%		(472	)
Comerica, Inc.		121		0.21	%		(476	)
Exelon Corp.		560		0.71	%		(504	)
John Wiley & Sons, Inc. — Class A		386		0.45	%		(521	)
Cogent Communications Holdings, Inc.		107		0.15	%		(552	)
Cal-Maine Foods, Inc.		611		0.64	%		(643	)
Kraft Heinz Co.		304		0.22	%		(701	)
Philip Morris International, Inc.		331		0.66	%		(732	)
AmerisourceBergen Corp. — Class A		441		0.95	%		(744	)
General Motors Co.		357		0.35	%		(783	)
ATN International, Inc.		218		0.33	%		(861	)
Host Hotels & Resorts, Inc.		889		0.40	%		(928	)
Regeneron Pharmaceuticals, Inc.*		46		0.34	%		(971	)
Chevron Corp.		403		1.26	%		(1,036	)
Cisco Systems, Inc.		146		0.19	%		(1,124	)
Union Pacific Corp.		114		0.48	%		(1,170	)
Kennametal, Inc.		476		0.38	%		(1,171	)
Domtar Corp.		589		0.55	%		(1,217	)
ManpowerGroup, Inc.		157		0.35	%		(1,302	)
JM Smucker Co.		121		0.35	%		(1,584	)
Gilead Sciences, Inc.		587		0.98	%		(1,597	)
BorgWarner, Inc.		453		0.44	%		(1,771	)
B&G Foods, Inc.		440		0.22	%		(1,786	)
Discovery, Inc. — Class A*		823		0.58	%		(1,926	)
Lear Corp.		107		0.33	%		(1,980	)
UnitedHealth Group, Inc.		64		0.37	%		(2,106	)
	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Alexion Pharmaceuticals, Inc.*		110		0.28	%	$	(2,112	)
Johnson & Johnson		221		0.75	%		(2,298	)
Norfolk Southern Corp.		120		0.57	%		(2,317	)
Lions Gate Entertainment Corp. — Class A*		2,227		0.54	%		(2,523	)
AMC Networks, Inc. — Class A*		490		0.63	%		(2,661	)
Herbalife Nutrition Ltd.*		542		0.54	%		(2,962	)
JetBlue Airways Corp.*		1,279		0.56	%		(2,993	)
Exxon Mobil Corp.		709		1.31	%		(2,999	)
FedEx Corp.		217		0.83	%		(3,010	)
Innoviva, Inc.*		891		0.25	%		(3,012	)
National Fuel Gas Co.		637		0.78	%		(3,841	)
Williams Companies, Inc.		1,183		0.75	%		(4,223	)
CSX Corp.		481		0.88	%		(4,277	)
H&R Block, Inc.		940		0.58	%		(4,522	)
Meredith Corp.		319		0.31	%		(4,578	)
Shenandoah Telecommunications Co.		730		0.61	%		(4,584	)
Unit Corp.*		4,077		0.36	%		(6,738	)
Pfizer, Inc.		1,003		0.95	%		(6,761	)
Total GS Equity Long Custom Basket							109,564
GS EQUITY SHORT CUSTOM BASKET
PTC, Inc.*		1,023		(0.85	)%		20,627
Fortive Corp.		1,533		(1.28	)%		16,434
Allegheny Technologies, Inc.*		3,585		(0.88	)%		13,695
International Flavors & Fragrances, Inc.		404		(0.60	)%		11,902
WR Grace & Co.		1,476		(1.20	)%		11,483
Diamondback Energy, Inc.		791		(0.86	)%		8,873
Autodesk, Inc.*		478		(0.86	)%		8,656
Workday, Inc. — Class A*		163		(0.34	)%		7,664
Transocean Ltd.*		5,396		(0.29	)%		6,806
Roper Technologies, Inc.		256		(1.11	)%		4,939
ServiceNow, Inc.*		124		(0.38	)%		4,895
FireEye, Inc.*		3,376		(0.55	)%		4,890
Guardant Health, Inc.*		329		(0.25	)%		4,806
Wingstop, Inc.		688		(0.73	)%		4,573
Materion Corp.		1,175		(0.88	)%		4,500
Southern Copper Corp.		1,461		(0.61	)%		4,500
Okta, Inc.*		124		(0.15	)%		4,227
Linde plc		459		(1.08	)%		4,167
Everbridge, Inc.*		107		(0.08	)%		3,970
Schlumberger Ltd.		1,519		(0.63	)%		3,828
Rollins, Inc.		1,101		(0.46	)%		3,820
Woodward, Inc.		600		(0.79	)%		3,726
Hudson Pacific Properties, Inc.		4,187		(1.70	)%		3,513
Core Laboratories N.V.		862		(0.49	)%		3,448
Fair Isaac Corp.*		149		(0.55	)%		3,314

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation
Chegg, Inc.*		239		(0.09	)%	$	3,313
Pegasystems, Inc.		1,119		(0.92	)%		2,921
Sensient Technologies Corp.		573		(0.48	)%		2,848
MongoDB, Inc.*		64		(0.09	)%		2,827
Twilio, Inc. — Class A*		72		(0.10	)%		2,667
Avalara, Inc.*		223		(0.18	)%		2,648
AptarGroup, Inc.		577		(0.83	)%		2,383
Coupa Software, Inc.*		127		(0.20	)%		2,364
Ares Management Corp. — Class A		1,617		(0.53	)%		2,315
Appian Corp.*		365		(0.21	)%		2,308
Wyndham Hotels & Resorts, Inc.		522		(0.33	)%		2,292
Trade Desk, Inc. — Class A*		44		(0.10	)%		2,229
Zendesk, Inc.*		114		(0.10	)%		2,117
Universal Display Corp.		51		(0.10	)%		2,027
EPAM Systems, Inc.*		161		(0.36	)%		1,954
Elastic N.V.*		107		(0.11	)%		1,837
HubSpot, Inc.*		58		(0.11	)%		1,765
Planet Fitness, Inc. — Class A*		137		(0.10	)%		1,744
Alteryx, Inc. — Class A*		110		(0.14	)%		1,667
Advanced Micro Devices, Inc.*		474		(0.17	)%		1,621
HEICO Corp.		114		(0.17	)%		1,581
MercadoLibre, Inc.*		17		(0.11	)%		1,472
Alarm.com Holdings, Inc.*		199		(0.11	)%		1,433
VeriSign, Inc.*		49		(0.11	)%		1,325
People’s United Financial, Inc.		2,264		(0.43	)%		1,324
Paycom Software, Inc.*		44		(0.11	)%		1,194
Veeva Systems, Inc. — Class A*		61		(0.11	)%		1,138
Mastercard, Inc. — Class A		109		(0.36	)%		1,097
Qualys, Inc.*		119		(0.11	)%		1,055
CVB Financial Corp.		1,912		(0.48	)%		956
CNO Financial Group, Inc.		2,772		(0.53	)%		915
Aspen Technology, Inc.*		78		(0.12	)%		908
Paylocity Holding Corp.*		99		(0.12	)%		820
Atlassian Corporation plc — Class A*		77		(0.12	)%		808
MSCI, Inc. — Class A		64		(0.17	)%		791
Charter Communications, Inc. — Class A*		99		(0.50	)%		516
IDEXX Laboratories, Inc.*		36		(0.12	)%		511
First Republic Bank		681		(0.80	)%		469
Appfolio, Inc. — Class A*		97		(0.11	)%		448
PROS Holdings, Inc.*		156		(0.11	)%		403
Signature Bank		275		(0.40	)%		303
National Oilwell Varco, Inc.		2,772		(0.71	)%		277
MarketAxess Holdings, Inc.		42		(0.17	)%		273
	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Blackline, Inc.*		213		(0.12	)%	$	196
Casella Waste Systems, Inc. — Class A*		681		(0.35	)%		184
Q2 Holdings, Inc.*		129		(0.12	)%		175
Compass Minerals International, Inc.		922		(0.63	)%		138
California Water Service Group		561		(0.36	)%		64
Capitol Federal Financial, Inc.		8,233		(1.38	)%		—
BankUnited, Inc.		746		(0.30	)%		(90	)
Copart, Inc.*		331		(0.32	)%		(277	)
Intuit, Inc.		37		(0.12	)%		(299	)
Exponent, Inc.		727		(0.62	)%		(299	)
Toro Co.		457		(0.41	)%		(343	)
Synopsys, Inc.*		331		(0.55	)%		(367	)
Glacier Bancorp, Inc.		1,300		(0.64	)%		(377	)
Verisk Analytics, Inc. — Class A		263		(0.50	)%		(438	)
Intuitive Surgical, Inc.*		20		(0.13	)%		(492	)
Avery Dennison Corp.		392		(0.54	)%		(510	)
Federal Realty Investment Trust		80		(0.13	)%		(627	)
McDonald’s Corp.		100		(0.26	)%		(805	)
Palo Alto Networks, Inc.*		294		(0.73	)%		(894	)
Five9, Inc.*		216		(0.14	)%		(997	)
American Campus Communities, Inc.		903		(0.53	)%		(1,020	)
ANSYS, Inc.*		51		(0.14	)%		(1,171	)
Healthcare Realty Trust, Inc.		1,030		(0.42	)%		(1,215	)
Alexandria Real Estate Equities, Inc.		406		(0.76	)%		(1,222	)
CubeSmart		1,565		(0.66	)%		(1,299	)
CoStar Group, Inc.*		41		(0.30	)%		(1,356	)
Bright Horizons Family Solutions, Inc.*		363		(0.67	)%		(1,590	)
WesBanco, Inc.		947		(0.43	)%		(1,648	)
Columbia Financial, Inc.*		2,083		(0.40	)%		(1,791	)
Cintas Corp.		60		(0.20	)%		(2,149	)
Balchem Corp.		857		(1.03	)%		(2,177	)
Old National Bancorp		3,575		(0.75	)%		(2,199	)
Pebblebrook Hotel Trust		2,528		(0.85	)%		(2,229	)
Douglas Emmett, Inc.		1,156		(0.60	)%		(2,254	)
Fastenal Co.		1,101		(0.44	)%		(2,270	)
RealPage, Inc.*		500		(0.38	)%		(2,280	)
Tyler Technologies, Inc.*		81		(0.26	)%		(2,325	)
DocuSign, Inc.*		197		(0.15	)%		(2,397	)
BOK Financial Corp.		963		(0.93	)%		(2,429	)
Liberty Property Trust		2,397		(1.49	)%		(2,546	)
Pool Corp.		166		(0.41	)%		(2,634	)
Monolithic Power Systems, Inc.		108		(0.20	)%		(2,642	)
Valley National Bancorp		6,072		(0.80	)%		(2,672	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Depreciation
AMETEK, Inc.		1,073		(1.20	)%	$	(2,774	)
South Jersey Industries, Inc.		2,657		(1.06	)%		(2,816	)
Crown Castle International Corp.		932		(1.57	)%		(2,899	)
WEC Energy Group, Inc.		518		(0.60	)%		(2,979	)
Kaiser Aluminum Corp.		444		(0.53	)%		(3,015	)
American Homes 4 Rent — Class A		2,612		(0.82	)%		(3,056	)
WP Carey, Inc.		670		(0.73	)%		(3,089	)
Essex Property Trust, Inc.		104		(0.41	)%		(3,236	)
Atmos Energy Corp.		289		(0.40	)%		(3,257	)
Extra Space Storage, Inc.		423		(0.60	)%		(3,261	)
Digital Realty Trust, Inc.		308		(0.49	)%		(3,262	)
American States Water Co.		566		(0.62	)%		(3,433	)
American Tower Corp. — Class A		303		(0.81	)%		(3,684	)
American Water Works Company, Inc.		546		(0.82	)%		(3,706	)
Camden Property Trust		778		(1.05	)%		(4,327	)
Axis Capital Holdings Ltd.		696		(0.56	)%		(4,414	)
UDR, Inc.		1,817		(1.07	)%		(4,654	)
Everest Re Group Ltd.		289		(0.93	)%		(4,925	)
Washington Federal, Inc.		1,283		(0.58	)%		(5,196	)
First Industrial Realty Trust, Inc.		1,788		(0.86	)%		(5,579	)
Scotts Miracle-Gro Co. — Class A		644		(0.80	)%		(5,674	)
Vulcan Materials Co.		412		(0.76	)%		(5,892	)
First Financial Bankshares, Inc.		1,551		(0.63	)%		(5,894	)
Equity LifeStyle Properties, Inc.		547		(0.89	)%		(6,088	)
Ball Corp.		1,155		(1.02	)%		(6,149	)
NextEra Energy, Inc.		199		(0.56	)%		(6,173	)
RLI Corp.		1,247		(1.41	)%		(6,513	)
STORE Capital Corp.		2,175		(0.99	)%		(6,590	)
Realty Income Corp.		1,537		(1.43	)%		(6,840	)
Equity Residential		771		(0.81	)%		(6,881	)
Invitation Homes, Inc.		2,606		(0.94	)%		(6,958	)
NewMarket Corp.		105		(0.60	)%		(7,039	)
Guidewire Software, Inc.*		914		(1.17	)%		(7,137	)
Proofpoint, Inc.*		448		(0.70	)%		(8,879	)
RPM International, Inc.		1,180		(0.99	)%		(9,016	)
SBA Communications Corp.		526		(1.54	)%		(9,405	)
Terreno Realty Corp.		2,362		(1.46	)%		(9,495	)
New York Community Bancorp, Inc.		4,424		(0.67	)%		(9,600	)
EastGroup Properties, Inc.		922		(1.40	)%		(9,718	)
Welltower, Inc.		1,429		(1.57	)%		(11,519	)
Agree Realty Corp.		1,795		(1.59	)%		(12,044	)
Equinix, Inc.		168		(1.18	)%		(12,190	)
	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Martin Marietta Materials, Inc.		293		(0.97	)%	$	(12,322	)
Sherwin-Williams Co.		179		(1.19	)%		(15,265	)
IHS Markit Ltd.*		2,158		(1.75	)%		(15,624	)
Rexford Industrial Realty, Inc.		3,454		(1.85	)%		(15,647	)
TransDigm Group, Inc.		306		(1.93	)%		(16,377	)
TransUnion		1,509		(1.49	)%		(16,659	)
Sun Communities, Inc.		1,090		(1.96	)%		(21,604	)
Total GS Equity Short Custom Basket							(175,207	)
MS EQUITY LONG CUSTOM BASKET
Pilgrim’s Pride Corp.*		859		0.72	%		8,929
Saia, Inc.*		255		0.63	%		8,344
Tyson Foods, Inc. — Class A		385		0.87	%		6,984
World Fuel Services Corp.		643		0.67	%		6,957
McKesson Corp.		436		1.56	%		5,729
Apple, Inc.		146		0.86	%		5,183
Microsoft Corp.		226		0.83	%		5,031
United Parcel Service, Inc. — Class B		333		1.05	%		4,951
CVS Health Corp.		498		0.82	%		4,942
FirstEnergy Corp.		733		0.93	%		4,772
Sysco Corp.		316		0.66	%		4,348
Delta Air Lines, Inc.		560		0.85	%		4,273
HCP, Inc.		1,034		0.97	%		4,260
Medtronic plc		228		0.65	%		4,186
PepsiCo, Inc.		274		0.99	%		4,168
ONEOK, Inc.		620		1.20	%		4,039
Kimberly-Clark Corp.		205		0.76	%		3,833
AT&T, Inc.		559		0.56	%		3,600
JPMorgan Chase & Co.		196		0.61	%		3,550
Hartford Financial Services Group, Inc.		316		0.50	%		3,543
Marathon Petroleum Corp.		515		0.82	%		3,107
United Airlines Holdings, Inc.*		298		0.69	%		2,944
Kansas City Southern		155		0.54	%		2,809
Portland General Electric Co.		642		0.95	%		2,748
Ameren Corp.		477		1.00	%		2,700
Old Dominion Freight Line, Inc.		99		0.44	%		2,598
Knight-Swift Transportation Holdings, Inc.		528		0.50	%		2,598
Alaska Air Group, Inc.		253		0.43	%		2,510
Omnicom Group, Inc.		458		0.94	%		2,492
Zimmer Biomet Holdings, Inc.		237		0.85	%		2,460
Colgate-Palmolive Co.		367		0.71	%		2,386
J.B. Hunt Transport Services, Inc.		202		0.59	%		2,333

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation
Baxter International, Inc.		277		0.64	%	$	2,321
Hologic, Inc.*		411		0.54	%		2,317
Toll Brothers, Inc.		422		0.45	%		2,239
Southwest Airlines Co.		526		0.75	%		2,199
Deluxe Corp.		320		0.41	%		2,198
Marten Transport Ltd.		636		0.35	%		2,131
Southern Co.		273		0.44	%		2,107
Medical Properties Trust, Inc.		2,065		1.06	%		2,106
Heartland Express, Inc.		930		0.53	%		2,102
Equity Commonwealth		1,271		1.14	%		1,957
Skyworks Solutions, Inc.		228		0.47	%		1,954
Landstar System, Inc.		233		0.69	%		1,890
Procter & Gamble Co.		87		0.28	%		1,869
US Foods Holding Corp.*		279		0.30	%		1,864
Hill-Rom Holdings, Inc.		208		0.57	%		1,840
Phillips 66		345		0.93	%		1,770
Agilent Technologies, Inc.		199		0.40	%		1,752
HollyFrontier Corp.		609		0.86	%		1,717
Home Depot, Inc.		39		0.24	%		1,668
Amgen, Inc.		224		1.14	%		1,611
Central Garden & Pet Co. — Class A*		374		0.27	%		1,591
Walmart, Inc.		73		0.23	%		1,567
News Corp. — Class A		951		0.35	%		1,531
DR Horton, Inc.		197		0.27	%		1,527
Facebook, Inc. — Class A*		123		0.58	%		1,502
Kellogg Co.		180		0.30	%		1,461
Apartment Investment & Management Co. — Class A		832		1.14	%		1,439
Diodes, Inc.*		227		0.24	%		1,428
General Mills, Inc.		371		0.54	%		1,413
Campbell Soup Co.		239		0.29	%		1,369
Alphabet, Inc. — Class C*		29		0.93	%		1,333
Kinder Morgan, Inc.		2,084		1.13	%		1,313
Molson Coors Brewing Co. — Class B		1,153		1.74	%		1,266
Bristol-Myers Squibb Co.		159		0.21	%		1,221
Walt Disney Co.		60		0.21	%		1,202
Kroger Co.		773		0.52	%		1,167
AMERCO		47		0.48	%		1,157
Eli Lilly & Co.		203		0.60	%		1,066
Cummins, Inc.		147		0.63	%		1,047
Echo Global Logistics, Inc.*		606		0.36	%		1,022
Allison Transmission Holdings, Inc.		526		0.65	%		994
TEGNA, Inc.		649		0.26	%		986
Merck & Company, Inc.		511		1.13	%		966
MetLife, Inc.		202		0.25	%		941
Hormel Foods Corp.		401		0.46	%		941
Cardinal Health, Inc.		572		0.71	%		903
Avista Corp.		330		0.42	%		899
Becton Dickinson and Co.		122		0.81	%		898
	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
OGE Energy Corp.		359		0.43	%	$	886
Schneider National, Inc. — Class B		1,090		0.62	%		850
Werner Enterprises, Inc.		492		0.46	%		827
Parker-Hannifin Corp.		50		0.24	%		795
Autoliv, Inc.		121		0.25	%		790
JetBlue Airways Corp.*		1,279		0.56	%		780
Lamb Weston Holdings, Inc.		170		0.32	%		761
Thermo Fisher Scientific, Inc.		84		0.64	%		755
Brinker International, Inc.		312		0.35	%		723
ManpowerGroup, Inc.		157		0.35	%		683
Public Service Enterprise Group, Inc.		264		0.43	%		653
Urban Edge Properties		497		0.26	%		616
ATN International, Inc.		218		0.33	%		558
Mondelez International, Inc. — Class A		162		0.24	%		527
Northern Trust Corp.		153		0.37	%		519
Coca-Cola Co.		162		0.23	%		516
Abbott Laboratories		101		0.22	%		499
Avnet, Inc.		250		0.29	%		474
Oracle Corp.		290		0.42	%		431
PACCAR, Inc.		177		0.33	%		388
Oshkosh Corp.		135		0.27	%		356
Integer Holdings Corp.*		174		0.35	%		355
Pinnacle West Capital Corp.		388		0.99	%		241
Berkshire Hathaway, Inc. — Class B*		40		0.22	%		240
Summit Hotel Properties, Inc.		1,283		0.39	%		237
Bank of America Corp.		295		0.23	%		219
Biogen, Inc.*		71		0.43	%		204
Clorox Co.		52		0.21	%		183
Forward Air Corp.		280		0.47	%		143
Caterpillar, Inc.		83		0.28	%		138
Danaher Corp.		49		0.19	%		122
State Street Corp.		150		0.23	%		51
John Wiley & Sons, Inc. — Class A		386		0.45	%		35
Bank of New York Mellon Corp.		188		0.22	%		16
Expeditors International of Washington, Inc.		121		0.24	%		(100	)
AmerisourceBergen Corp. — Class A		441		0.95	%		(104	)
Textron, Inc.		172		0.22	%		(141	)
Westlake Chemical Corp.		123		0.21	%		(160	)
Gilead Sciences, Inc.		587		0.98	%		(164	)
Citigroup, Inc.		117		0.21	%		(205	)
STERIS plc		77		0.29	%		(215	)
Starbucks Corp.		92		0.21	%		(235	)
Humana, Inc.		34		0.23	%		(245	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Depreciation
Visa, Inc. — Class A		33		0.15	%	$	(261	)
International Business Machines Corp.		56		0.21	%		(286	)
Valero Energy Corp.		396		0.89	%		(309	)
Principal Financial Group, Inc.		165		0.25	%		(319	)
Norfolk Southern Corp.		120		0.57	%		(331	)
Cogent Communications Holdings, Inc.		107		0.15	%		(346	)
Verizon Communications, Inc.		780		1.24	%		(406	)
Union Pacific Corp.		114		0.48	%		(466	)
Intel Corp.		290		0.39	%		(473	)
Targa Resources Corp.		332		0.35	%		(485	)
Delek US Holdings, Inc.		668		0.64	%		(494	)
Comerica, Inc.		121		0.21	%		(499	)
Post Holdings, Inc.*		158		0.44	%		(521	)
Cisco Systems, Inc.		146		0.19	%		(545	)
JM Smucker Co.		121		0.35	%		(590	)
Vishay Intertechnology, Inc.		552		0.25	%		(789	)
Regeneron Pharmaceuticals, Inc.*		46		0.34	%		(837	)
Scholastic Corp.		500		0.50	%		(870	)
General Motors Co.		357		0.35	%		(876	)
PPL Corp.		1,085		0.90	%		(922	)
TrueBlue, Inc.*		448		0.25	%		(945	)
Jazz Pharmaceuticals plc*		106		0.36	%		(970	)
Discovery, Inc. — Class A*		823		0.58	%		(1,006	)
Host Hotels & Resorts, Inc.		889		0.40	%		(1,119	)
Exelon Corp.		560		0.71	%		(1,243	)
Kraft Heinz Co.		304		0.22	%		(1,430	)
B&G Foods, Inc.		440		0.22	%		(1,439	)
Walgreens Boots Alliance, Inc.		253		0.37	%		(1,485	)
Archer-Daniels-Midland Co.		1,070		1.15	%		(1,519	)
Lear Corp.		107		0.33	%		(1,594	)
Waters Corp.*		69		0.40	%		(1,622	)
Chevron Corp.		403		1.26	%		(1,689	)
BorgWarner, Inc.		453		0.44	%		(1,744	)
AES Corp.		971		0.42	%		(1,855	)
UnitedHealth Group, Inc.		64		0.37	%		(1,885	)
CSX Corp.		481		0.88	%		(1,908	)
Johnson & Johnson		221		0.75	%		(2,060	)
Darling Ingredients, Inc.*		1,077		0.54	%		(2,326	)
Kennametal, Inc.		476		0.38	%		(2,342	)
Cal-Maine Foods, Inc.		611		0.64	%		(2,399	)
Domtar Corp.		589		0.55	%		(2,427	)
Innoviva, Inc.*		891		0.25	%		(2,807	)
Alexion Pharmaceuticals, Inc.*		110		0.28	%		(3,108	)
	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Philip Morris International, Inc.		331		0.66	%	$	(3,674	)
AMC Networks, Inc. — Class A*		490		0.63	%		(3,798	)
PBF Energy, Inc. — Class A		730		0.52	%		(3,949	)
H&R Block, Inc.		940		0.58	%		(4,133	)
Lions Gate Entertainment Corp. — Class A*		2,229		0.54	%		(4,251	)
Williams Companies, Inc.		1,183		0.75	%		(4,540	)
Ingredion, Inc.		407		0.87	%		(4,550	)
Renewable Energy Group, Inc.*		763		0.30	%		(6,032	)
Pfizer, Inc.		1,003		0.95	%		(6,108	)
Meredith Corp.		319		0.31	%		(6,570	)
FedEx Corp.		217		0.83	%		(6,623	)
Exxon Mobil Corp.		709		1.31	%		(6,899	)
Herbalife Nutrition Ltd.*		542		0.54	%		(7,139	)
National Fuel Gas Co.		637		0.78	%		(8,924	)
Unit Corp.*		4,077		0.36	%		(10,299	)
Shenandoah Telecommunications Co.		730		0.61	%		(10,446	)
Total MS Equity Long Custom Basket							71,589
MS EQUITY SHORT CUSTOM BASKET
PTC, Inc.*		1,023		(0.81	)%		22,262
Fortive Corp.		1,533		(1.23	)%		19,417
Core Laboratories N.V.		862		(0.47	)%		17,990
Allegheny Technologies, Inc.*		3,585		(0.85	)%		17,060
Diamondback Energy, Inc.		791		(0.83	)%		14,681
National Oilwell Varco, Inc.		2,772		(0.69	)%		14,165
WR Grace & Co.		1,476		(1.15	)%		13,948
Autodesk, Inc.*		478		(0.82	)%		11,747
Palo Alto Networks, Inc.*		294		(0.70	)%		10,472
FireEye, Inc.*		3,376		(0.53	)%		9,235
Transocean Ltd.*		5,396		(0.28	)%		7,318
Guardant Health, Inc.*		329		(0.25	)%		7,104
Southern Copper Corp.		1,461		(0.58	)%		6,911
Schlumberger Ltd.		1,519		(0.61	)%		6,658
Workday, Inc. — Class A*		163		(0.32	)%		6,315
International Flavors & Fragrances, Inc.		404		(0.58	)%		5,653
Wingstop, Inc.		688		(0.70	)%		4,413
Roper Technologies, Inc.		256		(1.07	)%		4,412
Rollins, Inc.		1,102		(0.44	)%		3,799
ServiceNow, Inc.*		124		(0.37	)%		3,642
Hudson Pacific Properties, Inc.		4,187		(1.64	)%		3,173
Okta, Inc.*		124		(0.14	)%		3,024
Alarm.com Holdings, Inc.*		199		(0.11	)%		2,875
Appian Corp.*		365		(0.20	)%		2,856
Everbridge, Inc.*		107		(0.08	)%		2,711

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Appreciation (Depreciation)
Planet Fitness, Inc. — Class A*		137		(0.09	)%	$	2,392
Signature Bank		275		(0.38	)%		2,384
MongoDB, Inc.*		64		(0.09	)%		2,374
Ares Management Corp. — Class A		1,617		(0.51	)%		2,087
EPAM Systems, Inc.*		161		(0.34	)%		2,035
WesBanco, Inc.		947		(0.41	)%		1,989
Fair Isaac Corp.*		149		(0.53	)%		1,981
Twilio, Inc. — Class A*		72		(0.09	)%		1,950
Kaiser Aluminum Corp.		444		(0.51	)%		1,891
Trade Desk, Inc. — Class A*		44		(0.10	)%		1,712
People’s United Financial, Inc.		2,264		(0.41	)%		1,641
Chegg, Inc.*		239		(0.08	)%		1,638
First Republic Bank		681		(0.77	)%		1,621
Zendesk, Inc.*		114		(0.10	)%		1,593
Qualys, Inc.*		119		(0.11	)%		1,405
MSCI, Inc. — Class A		64		(0.16	)%		1,387
HEICO Corp.		114		(0.17	)%		1,328
CNO Financial Group, Inc.		2,772		(0.51	)%		1,275
PROS Holdings, Inc.*		156		(0.11	)%		1,122
HubSpot, Inc.*		58		(0.10	)%		1,095
Blackline, Inc.*		213		(0.12	)%		1,086
Mastercard, Inc. — Class A		109		(0.35	)%		1,082
MercadoLibre, Inc.*		17		(0.11	)%		1,059
VeriSign, Inc.*		49		(0.11	)%		950
Avalara, Inc.*		223		(0.18	)%		768
IDEXX Laboratories, Inc.*		36		(0.11	)%		626
Coupa Software, Inc.*		127		(0.19	)%		577
Intuit, Inc.		37		(0.11	)%		528
Appfolio, Inc. — Class A*		97		(0.11	)%		496
Universal Display Corp.		51		(0.10	)%		482
Charter Communications, Inc. — Class A*		99		(0.48	)%		441
Alteryx, Inc. — Class A*		110		(0.14	)%		411
Paycom Software, Inc.*		44		(0.11	)%		410
CVB Financial Corp.		1,912		(0.47	)%		363
BOK Financial Corp.		963		(0.89	)%		258
Veeva Systems, Inc. — Class A*		61		(0.11	)%		249
Casella Waste Systems, Inc. — Class A*		681		(0.34	)%		142
Atlassian Corporation plc — Class A*		77		(0.11	)%		4
Livent Corp.*		0		0.00	%		3
California Water Service Group		561		(0.35	)%		(1	)
Intuitive Surgical, Inc.*		20		(0.13	)%		(163	)
BankUnited, Inc.		746		(0.29	)%		(209	)
Aspen Technology, Inc.*		78		(0.11	)%		(232	)
Copart, Inc.*		331		(0.31	)%		(273	)
	Shares		Percentage Notional Amount			Value and Unrealized Depreciation
Exponent, Inc.		727		(0.59	)%	$	(392	)
Toro Co.		457		(0.39	)%		(397	)
Verisk Analytics, Inc. — Class A		263		(0.49	)%		(470	)
ANSYS, Inc.*		51		(0.13	)%		(492	)
Synopsys, Inc.*		331		(0.53	)%		(500	)
Q2 Holdings, Inc.*		129		(0.12	)%		(534	)
Columbia Financial, Inc.*		2,083		(0.38	)%		(542	)
Paylocity Holding Corp.*		99		(0.11	)%		(561	)
American Campus Communities, Inc.		903		(0.51	)%		(578	)
Federal Realty Investment Trust		80		(0.13	)%		(674	)
Elastic N.V.*		107		(0.10	)%		(841	)
Advanced Micro Devices, Inc.*		474		(0.16	)%		(847	)
Sensient Technologies Corp.		573		(0.46	)%		(848	)
Avery Dennison Corp.		392		(0.52	)%		(968	)
McDonald’s Corp.		100		(0.25	)%		(1,006	)
RealPage, Inc.*		500		(0.37	)%		(1,030	)
Healthcare Realty Trust, Inc.		1,030		(0.40	)%		(1,123	)
Five9, Inc.*		216		(0.14	)%		(1,203	)
Wyndham Hotels & Resorts, Inc.		522		(0.32	)%		(1,232	)
Glacier Bancorp, Inc.		1,300		(0.61	)%		(1,300	)
DocuSign, Inc.*		197		(0.14	)%		(1,454	)
CoStar Group, Inc.*		41		(0.28	)%		(1,495	)
South Jersey Industries, Inc.		2,657		(1.02	)%		(1,940	)
Linde plc		459		(1.04	)%		(2,110	)
Fastenal Co.		1,101		(0.42	)%		(2,140	)
Monolithic Power Systems, Inc.		108		(0.20	)%		(2,184	)
Douglas Emmett, Inc.		1,156		(0.58	)%		(2,358	)
Tyler Technologies, Inc.*		81		(0.25	)%		(2,394	)
Cintas Corp.		60		(0.19	)%		(2,504	)
Pebblebrook Hotel Trust		2,528		(0.82	)%		(2,927	)
Compass Minerals International, Inc.		922		(0.61	)%		(3,036	)
WEC Energy Group, Inc.		518		(0.58	)%		(3,053	)
AMETEK, Inc.		1,073		(1.15	)%		(3,130	)
Old National Bancorp		3,575		(0.72	)%		(3,164	)
Atmos Energy Corp.		289		(0.38	)%		(3,165	)
Essex Property Trust, Inc.		104		(0.40	)%		(3,345	)
Liberty Property Trust		1,994		(1.20	)%		(3,385	)
Digital Realty Trust, Inc.		308		(0.47	)%		(3,400	)
MarketAxess Holdings, Inc.		42		(0.16	)%		(3,462	)
American States Water Co.		566		(0.59	)%		(3,567	)
Capitol Federal Financial, Inc.		8,233		(1.33	)%		(3,870	)
New York Community Bancorp, Inc.		4,424		(0.65	)%		(3,937	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
LONG SHORT EQUITY FUND

	Shares		Percentage Notional Amount			Value and Unrealized Depreciation
NewMarket Corp.		105		(0.58	)%	$	(4,219	)
CubeSmart		1,565		(0.64	)%		(4,445	)
Bright Horizons Family Solutions, Inc.*		363		(0.65	)%		(4,487	)
Alexandria Real Estate Equities, Inc.		406		(0.73	)%		(4,519	)
Axis Capital Holdings Ltd.		696		(0.54	)%		(4,719	)
Proofpoint, Inc.*		448		(0.68	)%		(4,726	)
Pegasystems, Inc.		1,119		(0.89	)%		(4,809	)
Realty Income Corp.		1,537		(1.38	)%		(4,965	)
WP Carey, Inc.		670		(0.70	)%		(5,375	)
UDR, Inc.		1,817		(1.03	)%		(5,683	)
Agree Realty Corp.		1,795		(1.53	)%		(5,708	)
Materion Corp.		1,175		(0.84	)%		(5,870	)
Balchem Corp.		857		(0.99	)%		(6,256	)
American Tower Corp. — Class A		303		(0.78	)%		(6,306	)
Extra Space Storage, Inc.		423		(0.58	)%		(6,530	)
Pool Corp.		166		(0.39	)%		(6,783	)
Camden Property Trust		778		(1.01	)%		(6,868	)
American Water Works Company, Inc.		546		(0.79	)%		(6,935	)
Equity Residential		771		(0.78	)%		(7,035	)
STORE Capital Corp.		2,175		(0.95	)%		(7,286	)
Valley National Bancorp		6,074		(0.77	)%		(7,350	)
AptarGroup, Inc.		577		(0.80	)%		(7,461	)
NextEra Energy, Inc.		199		(0.54	)%		(7,775	)
First Financial Bankshares, Inc.		1,551		(0.60	)%		(7,856	)
First Industrial Realty Trust, Inc.		1,788		(0.83	)%		(7,885	)
RPM International, Inc.		1,180		(0.95	)%		(8,592	)
Woodward, Inc.		600		(0.76	)%		(8,670	)
American Homes 4 Rent — Class A		2,612		(0.79	)%		(8,750	)
Guidewire Software, Inc.*		914		(1.12	)%		(9,864	)
Vulcan Materials Co.		412		(0.73	)%		(9,938	)
Washington Federal, Inc.		1,283		(0.55	)%		(10,084	)
Equity LifeStyle Properties, Inc.		547		(0.85	)%		(10,792	)
Dominion Energy, Inc.		2,836		(2.68	)%		(11,433	)
Crown Castle International Corp.		932		(1.51	)%		(11,836	)
EastGroup Properties, Inc.		922		(1.35	)%		(12,253	)
Ball Corp.		1,155		(0.98	)%		(13,343	)
Welltower, Inc.		1,429		(1.51	)%		(13,628	)
Invitation Homes, Inc.		2,606		(0.90	)%		(14,229	)
Everest Re Group Ltd.		289		(0.90	)%		(14,866	)
Scotts Miracle-Gro Co. — Class A		644		(0.77	)%		(15,643	)
IHS Markit Ltd.*		2,158		(1.69	)%		(17,160	)
Martin Marietta Materials, Inc.		293		(0.94	)%		(17,650	)
SBA Communications Corp.		526		(1.48	)%		(18,381	)
Sherwin-Williams Co.		179		(1.15	)%		(19,493	)
Americold Realty Trust		3,069		(1.33	)%		(20,532	)
Equinix, Inc.		168		(1.13	)%		(21,625	)
Terreno Realty Corp.		2,362		(1.41	)%		(21,742	)
TransDigm Group, Inc.		306		(1.86	)%		(21,961	)
TransUnion		1,509		(1.43	)%		(22,551	)
RLI Corp.		1,247		(1.35	)%		(24,488	)
Rexford Industrial Realty, Inc.		3,454		(1.78	)%		(28,702	)
Sun Communities, Inc.		1,090		(1.89	)%		(32,993	)
Total MS Equity Short Custom Basket							(404,810	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
2	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
3	Rate indicated is the 7-day yield as of September 30, 2019.
4	Securities lending collateral — See Note 7.
	GS — Goldman Sachs International
	MS — Morgan Stanley Capital Services LLC
	plc — Public Limited Company
	REIT — Real Estate Investment Trust
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
LONG SHORT EQUITY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	19,981,873	$	—	$	—	$	19,981,873
Money Market Fund		633,697		—		—		633,697
Securities Lending Collateral		120,823		—		—		120,823
Custom Basket Swap Agreements**		—		181,153		—		181,153
Total Assets	$	20,736,393	$	181,153	$	—	$	20,917,546

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Custom Basket Swap Agreements**	$	—	$	580,017	$	—	$	580,017

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

LONG SHORT EQUITY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $119,034 of securities loaned (cost $19,606,043)	$	20,736,393
Cash		46,947
Unrealized appreciation on OTC swap agreements		181,153
Receivables:
Dividends		28,482
Fund shares sold		347
Securities lending income		83
Total assets		20,993,405
Liabilities:
Unrealized depreciation on OTC swap agreements		580,017
Payable for:
Return of securities lending collateral		120,823
Fund shares redeemed		78,994
Swap settlement		40,297
Management fees		13,970
Distribution and service fees		3,989
Transfer agent and administrative fees		3,881
Portfolio accounting fees		1,552
Trustees’ fees*		396
Miscellaneous		21,948
Total liabilities		865,867
Commitments and contingent liabilities (Note 11)		—
Net assets	$	20,127,538
Net assets consist of:
Paid in capital	$	24,252,363
Total distributable earnings (loss)		(4,124,825	)
Net assets	$	20,127,538
A-Class:
Net assets	$	8,761,651
Capital shares outstanding		552,995
Net asset value per share	$	15.84
Maximum offering price per share (Net asset value divided by 95.25%)	$	16.63
C-Class:
Net assets	$	821,496
Capital shares outstanding		59,328
Net asset value per share	$	13.85
P-Class:
Net assets	$	8,354,851
Capital shares outstanding		525,622
Net asset value per share	$	15.90
Institutional Class:
Net assets	$	2,189,540
Capital shares outstanding		134,698
Net asset value per share	$	16.26

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends	$	258,150
Income from securities lending, net		367
Total investment income		258,517
Expenses:
Management fees		95,355
Distribution and service fees:
A-Class		11,666
C-Class		5,452
P-Class		10,982
Transfer agent and administrative fees		26,488
Portfolio accounting fees		10,595
Registration fees		10,336
Trustees’ fees*		2,751
Custodian fees		1,506
Miscellaneous		13,613
Total expenses		188,744
Net investment income		69,773
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		189,909
Swap agreements		(784,382	)
Net realized loss		(594,473	)
Net change in unrealized appreciation (depreciation) on:
Investments		331,602
Swap agreements		(331,282	)
Net change in unrealized appreciation (depreciation)		320
Net realized and unrealized loss		(594,153	)
Net decrease in net assets resulting from operations	$	(524,380	)

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

24 | 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, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	69,773		$	95,241
Net realized loss on investments		(594,473	)		(3,806,811	)
Net change in unrealized appreciation (depreciation) on investments		320			2,172,534
Net decrease in net assets resulting from operations		(524,380	)		(1,539,036	)
Distributions to shareholders:
A-Class		—			(186,614	)
C-Class		—			(32,272	)
P-Class		—			(181,349	)
Institutional Class		—			(38,261	)
Total distributions to shareholders		—			(438,496	)
Capital share transactions:
Proceeds from sale of shares
A-Class		342,533			8,704,774
C-Class		5,100			28,175
P-Class		199,471			1,075,439
Institutional Class		667,464			841,185
Distributions reinvested
A-Class		—			183,572
C-Class		—			32,052
P-Class		—			171,465
Institutional Class		—			38,261
Cost of shares redeemed
A-Class		(1,496,639	)		(2,055,064	)
C-Class		(568,194	)		(9,729,027	)
P-Class		(929,247	)		(3,739,420	)
Institutional Class		(455,860	)		(1,428,171	)
Net decrease from capital share transactions		(2,235,372	)		(5,876,759	)
Net decrease in net assets		(2,759,752	)		(7,854,291	)
Net assets:
Beginning of period		22,887,290			30,741,581
End of period	$	20,127,538		$	22,887,290
Capital share activity:
Shares sold
A-Class		21,940			507,240
C-Class		366			1,935
P-Class		12,474			62,121
Institutional Class		41,549			48,459
Shares issued from reinvestment of distributions
A-Class		—			11,339
C-Class		—			2,252
P-Class		—			10,558
Institutional Class		—			2,308
Shares redeemed
A-Class		(95,100	)		(122,808	)
C-Class		(41,280	)		(642,616	)
P-Class		(59,339	)		(222,239	)
Institutional Class		(28,419	)		(82,197	)
Net decrease in shares		(147,809	)		(423,648	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	16.20		$	17.41		$	15.80		$	15.26		$	16.16		$	15.07
Income (loss) from investment operations:
Net investment income (loss)b		.05			.10			—	c		(.09	)		(.10	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		(.41	)		(1.02	)		1.61			.63			(.80	)		1.15
Total from investment operations		(.36	)		(.92	)		1.61			.54			(.90	)		1.09
Less distributions from:
Return of capital		—			(.29	)		—			—			—			—
Total distributions		—			(.29	)		—			—			—			—
Net asset value, end of period	$	15.84		$	16.20		$	17.41		$	15.80		$	15.26		$	16.16
Total Returnd		(2.22	%)		(5.31	%)		10.19	%		3.54	%		(5.57	%)		7.23	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,762		$	10,143		$	4,012		$	4,615		$	10,803		$	6,063
Ratios to average net assets:
Net investment income (loss)		0.67	%		0.58	%		0.01	%		(0.59	%)		(0.66	%)		(0.42	%)
Total expensese,f		1.77	%		1.78	%		1.77	%		2.25	%		2.53	%		2.17	%
Portfolio turnover rate		37	%		170	%		328	%		223	%		224	%		331	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	14.21		$	15.43		$	14.11		$	13.72		$	14.64		$	13.76
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		(.07	)		(.11	)		(.18	)		(.21	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		(.35	)		(.86	)		1.43			.57			(.71	)		1.04
Total from investment operations		(.36	)		(.93	)		1.32			.39			(.92	)		.88
Less distributions from:
Return of capital		—			(.29	)		—			—			—			—
Total distributions		—			(.29	)		—			—			—			—
Net asset value, end of period	$	13.85		$	14.21		$	15.43		$	14.11		$	13.72		$	14.64
Total Returnd		(2.53	%)		(6.00	%)		9.36	%		2.77	%		(6.28	%)		6.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	821		$	1,424		$	11,394		$	13,235		$	16,760		$	19,952
Ratios to average net assets:
Net investment income (loss)		(0.08	%)		(0.43	%)		(0.74	%)		(1.30	%)		(1.45	%)		(1.16	%)
Total expensese,f		2.52	%		2.50	%		2.52	%		2.98	%		3.24	%		2.92	%
Portfolio turnover rate		37	%		170	%		328	%		223	%		224	%		331	%

26 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	16.25		$	17.47		$	15.86		$	15.31		$	16.21		$	15.12
Income (loss) from investment operations:
Net investment income (loss)b		.05			.08			—	c		(.09	)		(.11	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		(.40	)		(1.01	)		1.61			.64			(.79	)		1.16
Total from investment operations		(.35	)		(.93	)		1.61			.55			(.90	)		1.09
Less distributions from:
Return of capital		—			(.29	)		—			—			—			—
Total distributions		—			(.29	)		—			—			—			—
Net asset value, end of period	$	15.90		$	16.25		$	17.47		$	15.86		$	15.31		$	16.21
Total Return		(2.15	%)		(5.35	%)		10.15	%		3.53	%		(5.55	%)		7.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,355		$	9,303		$	12,614		$	13,779		$	23,477		$	20,020
Ratios to average net assets:
Net investment income (loss)		0.68	%		0.47	%		0.01	%		(0.58	%)		(0.67	%)		(0.43	%)
Total expensese,f		1.77	%		1.77	%		1.76	%		2.24	%		2.50	%		2.17	%
Portfolio turnover rate		37	%		170	%		328	%		223	%		224	%		331	%

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	16.60		$	17.79		$	16.11		$	15.50		$	16.38		$	15.24
Income (loss) from investment operations:
Net investment income (loss)b		.08			.12			.05			(.03	)		(.05	)		(—	)c
Net gain (loss) on investments (realized and unrealized)		(.42	)		(1.02	)		1.63			.64			(.83	)		1.14
Total from investment operations		(.34	)		(.90	)		1.68			.61			(.88	)		1.14
Less distributions from:
Return of capital		—			(.29	)		—			—			—			—
Total distributions		—			(.29	)		—			—			—			—
Net asset value, end of period	$	16.26		$	16.60		$	17.79		$	16.11		$	15.50		$	16.38
Total Return		(2.05	%)		(5.08	%)		10.43	%		3.94	%		(5.37	%)		7.48	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,190		$	2,018		$	2,722		$	1,990		$	525		$	302
Ratios to average net assets:
Net investment income (loss)		0.93	%		0.72	%		0.31	%		(0.20	%)		(0.29	%)		(0.01	%)
Total expensese,f		1.52	%		1.51	%		1.50	%		1.96	%		2.27	%		1.95	%
Portfolio turnover rate		37	%		170	%		328	%		223	%		224	%		331	%

a	Unaudited figures for the period ended September 30, 2019. 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	Does not include expenses of the underlying funds in which the Fund invests.
f	Total expenses may include certain non-operating expenses. Excluding these non-operating expenses, the net expense ratios for the years or periods presended was as follows:

	09/30/19	03/31/19	03/31/18	03/31/17	03/31/16	03/31/15
A-Class	1.77%	1.78%	1.68%	1.67%	1.66%	1.66%
C-Class	2.52%	2.50%	2.44%	2.42%	2.41%	2.41%
P-Class	1.77%	1.77%	1.69%	1.67%	1.66%	1.66%
Institutional Class	1.52%	1.51%	1.43%	1.43%	1.41%	1.40%

^* H-Class shares redesignated as P-Class shares effective following the close of business on April 30, 2015.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.

COUNTRY DIVERSIFICATION

Country	% of Long-Term Investments
China	32.3%
Taiwan, Province of China	16.8%
Brazil	16.0%
India	12.0%
Cayman Islands	7.6%
Republic of Korea	5.1%
Mexico	3.4%
Other	6.8%
Total Long-Term Investments	100.0%

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	16.5%
Taiwan Semiconductor Manufacturing Company Ltd. ADR	11.9%
HDFC Bank Ltd. ADR	5.2%
China Mobile Ltd. ADR	3.1%
Infosys Ltd. ADR	2.9%
Itau Unibanco Holding S.A. ADR	2.8%
Vale S.A. ADR	2.5%
Banco Bradesco S.A. ADR	2.2%
Petroleo Brasileiro S.A. ADR	2.0%
Baidu, Inc. ADR	1.9%
Top Ten Total	51.0%
“Ten Largest Holdings” excludes any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 29

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded) September 30, 2019

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	Since Inception (10/29/10)
A-Class Shares	(13.67%)	(15.08%)	(3.99%)	(6.73%)
A-Class Shares with sales charge‡	(17.77%)	(19.12%)	(4.92%)	(7.23%)
C-Class Shares	(13.98%)	(15.73%)	(4.72%)	(7.28%)
C-Class Shares with CDSC§	(14.84%)	(16.57%)	(4.72%)	(7.28%)
H-Class Shares	(13.66%)	(15.06%)	(4.02%)	(6.72%)
BNY Mellon Emerging Markets 50 ADR Index	(5.07%)	(3.24%)	1.84%	0.42%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BNY Mellon Emerging Markets 50 ADR Index and S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

30 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 76.1%
Communications - 29.4%
Alibaba Group Holding Ltd. ADR*		3,796	$	634,805
China Mobile Ltd. ADR		2,886		119,480
Baidu, Inc. ADR*		722		74,193
JD.com, Inc. ADR*		2,272		64,093
America Movil SAB de CV — Class L ADR		3,046		45,264
Telekomunikasi Indonesia Persero Tbk PT ADR		1,241		37,367
Chunghwa Telecom Company Ltd. ADR		992		35,404
Ctrip.com International Ltd. ADR*		1,040		30,462
SK Telecom Company Ltd. ADR		778		17,272
China Telecom Corporation Ltd. ADR1		362		16,496
China Unicom Hong Kong Ltd. ADR		1,518		15,924
Telefonica Brasil S.A. ADR		1,081		14,237
Autohome, Inc. ADR*		148		12,303
58.com, Inc. ADR*		240		11,834
Total Communications				1,129,134
Technology - 17.5%
Taiwan Semiconductor Manufacturing Company Ltd. ADR		9,883		459,362
Infosys Ltd. ADR		9,755		110,914
NetEase, Inc. ADR		180		47,912
ASE Technology Holding Company Ltd. ADR		4,006		17,867
Wipro Ltd. ADR		3,778		13,790
Momo, Inc. ADR		410		12,702
United Microelectronics Corp. ADR		5,325		11,129
Total Technology				673,676
Financial - 13.1%
HDFC Bank Ltd. ADR		3,512		200,360
Banco Bradesco S.A. ADR		10,525		85,673
ICICI Bank Ltd. ADR		4,103		49,974
China Life Insurance Company Ltd. ADR		3,885		44,755
Shinhan Financial Group Company Ltd. ADR		1,176		41,148
KB Financial Group, Inc. ADR		1,026		36,649
Banco de Chile ADR		580		16,298
Bancolombia S.A. ADR		295		14,588
Woori Financial Group, Inc. ADR		408		12,734
Total Financial				502,179
Consumer, Non-cyclical - 5.0%
Ambev S.A. ADR		11,497		53,116
Fomento Economico Mexicano SAB de CV ADR		485		44,417
New Oriental Education & Technology Group, Inc. ADR*		310		34,336
TAL Education Group ADR*		956		32,733
BRF S.A. ADR*		1,888		17,294
BeiGene Ltd. ADR*		96		11,756
Total Consumer, Non-cyclical				193,652
Energy - 4.7%
CNOOC Ltd. ADR		420		63,945
Petroleo Brasileiro S.A. ADR		3,497		50,602
China Petroleum & Chemical Corp. ADR		666		39,094
PetroChina Company Ltd. ADR		551		27,996
Total Energy				181,637
Basic Materials - 4.6%
Vale S.A. ADR*		8,277		95,185
POSCO ADR		737		34,757
Sasol Ltd. ADR		1,497		25,464
AngloGold Ashanti Ltd. ADR		1,077		19,677
Total Basic Materials				175,083
Industrial - 1.0%
ZTO Express Cayman, Inc. ADR		1,128		24,060
Cemex SAB de CV ADR		3,952		15,492
Total Industrial				39,552
Utilities - 0.8%
Enel Americas S.A. ADR		1,909		17,391
Korea Electric Power Corp. ADR*		1,341		14,536
Total Utilities				31,927
Total Common Stocks
(Cost $2,628,327)				2,926,840
PREFERRED STOCKS† - 4.8%
Financial - 2.8%
Itau Unibanco Holding S.A. ADR		12,650		106,387
Energy - 2.0%
Petroleo Brasileiro S.A. ADR		5,850		76,869
Total Preferred Stocks
(Cost $163,207)				183,256
	Face Amount
REPURCHASE AGREEMENTS††,2 - 25.1%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/193	$	600,371		600,371
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/193		193,059		193,059
Barclays Capital issued 09/30/19 at 2.00% due 10/01/193		173,753		173,753
Total Repurchase Agreements
(Cost $967,183)				967,183

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2019
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
SECURITIES LENDING COLLATERAL†,4 - 0.2%
Money Market Fund
First American Government Obligations Fund — Class Z, 1.83%5		6,946	$	6,946
Total Securities Lending Collateral
(Cost $6,946)				6,946
Total Investments - 106.2%
(Cost $3,765,663)			$	4,084,225
Other Assets & Liabilities, net - (6.2)%				(238,296	)
Total Net Assets - 100.0%			$	3,845,929

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay			Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Equity Index Swap Agreements††
BNP Paribas	BNY Mellon Emerging Markets 50 ADR Index6		2.64	%	At Maturity		10/29/19		904	$	2,224,702	$	(32,306	)
Goldman Sachs International	BNY Mellon Emerging Markets 50 ADR Index6		2.46	%	At Maturity		10/28/19		955		2,350,814		(34,336	)
										$	4,575,516	$	(66,642	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is on loan at September 30, 2019 — See Note 7.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
4	Securities lending collateral — See Note 7.
5	Rate indicated is the 7-day yield as of September 30, 2019.
6	Total Return based on BNY Mellon Emerging Markets 50 ADR +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2019.
	ADR — American Depositary Receipt
	See Sector Classification in Other Information section.

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
EMERGING MARKETS 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Common Stocks	$	2,926,840	$	—	$	—	$	2,926,840
Preferred Stocks		183,256		—		—		183,256
Repurchase Agreements		—		967,183		—		967,183
Securities Lending Collateral		6,946		—		—		6,946
Total Assets	$	3,117,042	$	967,183	$	—	$	4,084,225

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Equity Index Swap Agreements**	$	—	$	66,642	$	—	$	66,642

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value - including $6,881 of securities loaned (cost $2,798,480)	$	3,117,042
Repurchase agreements, at value (cost $967,183)		967,183
Receivables:
Fund shares sold		309,557
Dividends		10,912
Foreign tax reclaims		64
Interest		62
Total assets		4,404,820
Liabilities:
Unrealized depreciation on OTC swap agreements		66,642
Payable for:
Fund shares redeemed		457,524
Swap settlement		12,181
Return of securities lending collateral		6,946
Management fees		3,218
Distribution and service fees		1,053
Transfer agent and administrative fees		894
Portfolio accounting fees		537
Trustees’ fees*		152
Miscellaneous		9,744
Total liabilities		558,891
Commitments and contingent liabilities (Note 11)		—
Net assets	$	3,845,929
Net assets consist of:
Paid in capital	$	17,969,422
Total distributable earnings (loss)		(14,123,493	)
Net assets	$	3,845,929
A-Class:
Net assets	$	1,254,412
Capital shares outstanding		20,461
Net asset value per share	$	61.31
Maximum offering price per share (Net asset value divided by 95.25%)	$	64.37
C-Class:
Net assets	$	264,814
Capital shares outstanding		4,559
Net asset value per share	$	58.09
H-Class:
Net assets	$	2,326,703
Capital shares outstanding		37,941
Net asset value per share	$	61.32

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Dividends (net of foreign withholding tax of $1,361)	$	63,923
Interest		35,494
Income from securities lending, net		8
Total investment income		99,425
Expenses:
Management fees		38,528
Distribution and service fees:
A-Class		1,684
C-Class		1,636
H-Class		8,612
Transfer agent and administrative fees		10,703
Portfolio accounting fees		6,423
Registration fees		4,586
Trustees’ fees*		1,268
Custodian fees		620
Line of credit fees		55
Miscellaneous		6,372
Total expenses		80,487
Net investment income		18,938
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(471,657	)
Swap agreements		(2,847,129	)
Futures contracts		(89,331	)
Net realized loss		(3,408,117	)
Net change in unrealized appreciation (depreciation) on:
Investments		(536,362	)
Swap agreements		(249,260	)
Futures contracts		(185	)
Net change in unrealized appreciation (depreciation)		(785,807	)
Net realized and unrealized loss		(4,193,924	)
Net decrease in net assets resulting from operations	$	(4,174,986	)

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

34 | 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, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	18,938		$	72,708
Net realized loss on investments		(3,408,117	)		(4,080,724	)
Net change in unrealized appreciation (depreciation) on investments		(785,807	)		(811,319	)
Net decrease in net assets resulting from operations		(4,174,986	)		(4,819,335	)
Capital share transactions:
Proceeds from sale of shares
A-Class		442,272			3,128,163
C-Class		550,328			1,588,188
H-Class		136,464,451			340,236,253
Cost of shares redeemed
A-Class		(1,248,816	)		(3,658,363	)
C-Class		(652,023	)		(1,600,378	)
H-Class		(136,841,600	)		(356,547,878	)
Net decrease from capital share transactions		(1,285,388	)		(16,854,015	)
Net decrease in net assets		(5,460,374	)		(21,673,350	)
Net assets:
Beginning of period		9,306,303			30,979,653
End of period	$	3,845,929		$	9,306,303
Capital share activity:
Shares sold
A-Class		6,838			44,229
C-Class		8,921			25,248
H-Class		2,092,105			4,741,011
Shares redeemed
A-Class		(18,014	)		(49,144	)
C-Class		(10,629	)		(25,234	)
H-Class		(2,147,608	)		(4,960,263	)
Net decrease in shares		(68,387	)		(224,153	)

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	71.02		$	87.20		$	60.99		$	44.79		$	60.50		$	66.27
Income (loss) from investment operations:
Net investment income (loss)b		.29			.40			(.24	)		(.48	)		(.23	)		(.37	)
Net gain (loss) on investments (realized and unrealized)		(10.00	)		(16.58	)		26.45			16.68			(14.83	)		(5.40	)
Total from investment operations		(9.71	)		(16.18	)		26.21			16.20			(15.06	)		(5.77	)
Less distributions from:
Net investment income		—			—			—			—			(.65	)		—
Total distributions		—			—			—			—			(.65	)		—
Net asset value, end of period	$	61.31		$	71.02		$	87.20		$	60.99		$	44.79		$	60.50
Total Returnc		(13.67	%)		(18.56	%)		42.97	%		36.17	%		(24.84	%)		(8.72	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,254		$	2,247		$	3,187		$	628		$	3,988		$	382
Ratios to average net assets:
Net investment income (loss)		0.89	%		0.54	%		(0.30	%)		(0.96	%)		(0.48	%)		(0.53	%)
Total expenses		1.85	%		1.84	%		1.76	%		1.76	%		1.75	%		1.75	%
Portfolio turnover rate		543	%		1,978	%		1,006	%		2,568	%		2,874	%		1,085	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	67.53		$	83.55		$	58.90		$	43.56		$	59.37		$	65.46
Income (loss) from investment operations:
Net investment income (loss)b		.06			(.22	)		(.61	)		(.79	)		(.74	)		(.73	)
Net gain (loss) on investments (realized and unrealized)		(9.50	)		(15.80	)		25.26			16.13			(14.42	)		(5.36	)
Total from investment operations		(9.44	)		(16.02	)		24.65			15.34			(15.16	)		(6.09	)
Less distributions from:
Net investment income		—			—			—			—			(.65	)		—
Total distributions		—			—			—			—			(.65	)		—
Net asset value, end of period	$	58.09		$	67.53		$	83.55		$	58.90		$	43.56		$	59.37
Total Returnc		(13.98	%)		(19.17	%)		41.87	%		35.19	%		(25.48	%)		(9.32	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	265		$	423		$	522		$	361		$	271		$	1,287
Ratios to average net assets:
Net investment income (loss)		0.21	%		(0.33	%)		(0.82	%)		(1.55	%)		(1.49	%)		(0.99	%)
Total expenses		2.59	%		2.59	%		2.56	%		2.50	%		2.46	%		2.48	%
Portfolio turnover rate		543	%		1,978	%		1,006	%		2,568	%		2,874	%		1,085	%

36 | 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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017			Year Ended March 31, 2016			Year Ended March 31, 2015
Per Share Data
Net asset value, beginning of period	$	71.02		$	87.21		$	61.01		$	44.84		$	60.61		$	66.37
Income (loss) from investment operations:
Net investment income (loss)b		.12			.50			(.25	)		(.42	)		(.41	)		.20
Net gain (loss) on investments (realized and unrealized)		(9.82	)		(16.69	)		26.45			16.59			(14.71	)		(5.96	)
Total from investment operations		(9.70	)		(16.19	)		26.20			16.17			(15.12	)		(5.76	)
Less distributions from:
Net investment income		—			—			—			—			(.65	)		—
Total distributions		—			—			—			—			(.65	)		—
Net asset value, end of period	$	61.32		$	71.02		$	87.21		$	61.01		$	44.84		$	60.61
Total Return		(13.66	%)		(18.56	%)		42.95	%		36.04	%		(24.88	%)		(8.71	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,327		$	6,636		$	27,270		$	6,698		$	13,238		$	2,136
Ratios to average net assets:
Net investment income (loss)		0.37	%		0.71	%		(0.32	%)		(0.82	%)		(0.76	%)		0.25	%
Total expenses		1.85	%		1.85	%		1.77	%		1.76	%		1.74	%		1.75	%
Portfolio turnover rate		543	%		1,978	%		1,006	%		2,568	%		2,874	%		1,085	%

a	Unaudited figures for the period ended September 30, 2019. 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 | 37

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	Since Inception (10/29/10)
A-Class Shares	7.20%	(2.58%)	(13.36%)	(12.96%)
A-Class Shares with sales charge‡	2.11%	(7.21%)	(14.20%)	(13.43%)
C-Class Shares	6.50%	(3.44%)	(14.07%)	(13.03%)
C-Class Shares with CDSC§	5.50%	(4.41%)	(14.07%)	(13.03%)
H-Class Shares	7.28%	(2.51%)	(13.48%)	(13.03%)
BNY Mellon Emerging Markets 50 ADR Index	(5.07%)	(3.24%)	1.84%	0.42%
S&P 500 Index	6.08%	4.25%	10.84%	13.24%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The BNY Mellon Emerging Markets 50 ADR Index and the S&P 500 Index are unmanaged indices and, unlike the Fund, have no management fees or operating expenses to reduce their reported returns.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

38 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
INVERSE EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
U.S. TREASURY BILLS†† - 1.6%
U.S. Treasury Bills
1.93% due 10/29/191,2	$	6,000	$	5,991
Total U.S. Treasury Bills
(Cost $5,991)				5,991
REPURCHASE AGREEMENTS††,3 - 222.2%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/194		516,195		516,195
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/194		165,991		165,991
Barclays Capital issued 09/30/19 at 2.00% due 10/01/194		149,392		149,392
Total Repurchase Agreements
(Cost $831,578)				831,578
Total Investments - 223.8%
(Cost $837,569)			$	837,569
Other Assets & Liabilities, net - (123.8)%				(463,398	)
Total Net Assets - 100.0%			$	374,171

Total Return Swap Agreements
Counterparty	Index	Financing Rate Receive			Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Appreciation
OTC Equity Index Swap Agreements Sold Short††
Goldman Sachs International	BNY Mellon Emerging Markets 50 ADR Index5		(1.46	)%	At Maturity		10/28/19		193	$	474,093	$	8,502
BNP Paribas	BNY Mellon Emerging Markets 50 ADR Index5		(1.74	)%	At Maturity		10/29/19		110		271,640		3,944
										$	745,733	$	12,446

††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is pledged as futures collateral at September 30, 2019.
2	Rate indicated is the effective yield at the time of purchase.
3	Repurchase Agreements — See Note 6.
4	All or a portion of this security is pledged as equity index swap collateral at September 30, 2019.
5	Total Return based on BNY Mellon Emerging Markets 50 ADR Index +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2019.
	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, 2019
INVERSE EMERGING MARKETS 2x STRATEGY FUND

The following table summarizes the inputs used to value the Fund’s investments at September 30, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
U.S. Treasury Bills	$	—	$	5,991	$	—	$	5,991
Repurchase Agreements		—		831,578		—		831,578
Equity Index Swap Agreements**		—		12,446		—		12,446
Total Assets	$	—	$	850,015	$	—	$	850,015

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value (cost $5,991)	$	5,991
Repurchase agreements, at value (cost $831,578)		831,578
Unrealized appreciation on OTC swap agreements		12,446
Receivables:
Fund shares sold		36,062
Interest		52
Total assets		886,129
Liabilities:
Payable for:
Fund shares redeemed		508,895
Swap settlement		1,117
Management fees		495
Distribution and service fees		140
Transfer agent and administrative fees		138
Portfolio accounting fees		83
Trustees’ fees*		16
Miscellaneous		1,074
Total liabilities		511,958
Commitments and contingent liabilities (Note 11)		—
Net assets	$	374,171
Net assets consist of:
Paid in capital	$	18,954,567
Total distributable earnings (loss)		(18,580,396	)
Net assets	$	374,171
A-Class:
Net assets	$	10,466
Capital shares outstanding		241
Net asset value per share	$	43.49
Maximum offering price per share (Net asset value divided by 95.25%)	$	45.66
C-Class:
Net assets	$	3,576
Capital shares outstanding		83
Net asset value per share	$	43.08
H-Class:
Net assets	$	360,129
Capital shares outstanding		8,337
Net asset value per share	$	43.20

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Interest	$	10,700
Total investment income		10,700
Expenses:
Management fees		3,892
Distribution and service fees:
A-Class		32
C-Class		39
H-Class		1,042
Transfer agent and administrative fees		1,082
Registration fees		904
Portfolio accounting fees		650
Trustees’ fees*		359
Custodian fees		69
Miscellaneous		30
Total expenses		8,099
Net investment income		2,601
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		(72,337	)
Futures contracts		1,340
Net realized loss		(70,997	)
Net change in unrealized appreciation (depreciation) on:
Swap agreements		53,538
Net change in unrealized appreciation (depreciation)		53,538
Net realized and unrealized loss		(17,459	)
Net decrease in net assets resulting from operations	$	(14,858	)

^* 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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,601		$	8,795
Net realized loss on investments		(70,997	)		(840,947	)
Net change in unrealized appreciation (depreciation) on investments		53,538			(19,504	)
Net decrease in net assets resulting from operations		(14,858	)		(851,656	)
Capital share transactions:
Proceeds from sale of shares
A-Class		368,493			1,199,460
C-Class		682,448			729,537
H-Class		30,579,724			138,431,280
Cost of shares redeemed
A-Class		(371,791	)		(1,206,928	)
C-Class		(683,876	)		(739,662	)
H-Class		(31,961,894	)		(136,590,922	)
Net increase (decrease) from capital share transactions		(1,386,896	)		1,822,765
Net increase (decrease) in net assets		(1,401,754	)		971,109
Net assets:
Beginning of period		1,775,925			804,816
End of period	$	374,171		$	1,775,925
Capital share activity:
Shares sold
A-Class		8,460			25,169
C-Class		16,231			16,881
H-Class		723,733			3,075,813
Shares redeemed
A-Class		(8,619	)		(25,868	)
C-Class		(16,233	)		(17,267	)
H-Class		(759,011	)		(3,051,369	)
Net increase (decrease) in shares		(35,439	)		23,359

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	40.57		$	39.08		$	63.42		$	101.83		$	101.26		$	110.02
Income (loss) from investment operations:
Net investment income (loss)b		.10			.23			(.28	)		(1.42	)		(1.92	)		(1.74	)
Net gain (loss) on investments (realized and unrealized)		2.82	e		1.26	e		(24.06	)		(36.99	)		2.49			(7.02	)
Total from investment operations		2.92			1.49			(24.34	)		(38.41	)		.57			(8.76	)
Net asset value, end of period	$	43.49		$	40.57		$	39.08		$	63.42		$	101.83		$	101.26
Total Returnc		7.20	%		3.81	%		(38.35	%)		(37.72	%)		0.53	%		(7.96	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10		$	16		$	43		$	42		$	448		$	62
Ratios to average net assets:
Net investment income (loss)		0.47	%		0.51	%		(0.64	%)		(1.50	%)		(1.59	%)		(1.74	%)
Total expenses		1.91	%		1.88	%		1.76	%		1.75	%		1.75	%		1.75	%
Portfolio turnover rate		—			—			—			—			—			—

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	40.45		$	39.34		$	64.21		$	103.83		$	104.23		$	114.21
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.29	)		(.74	)		(1.88	)		(2.82	)		(2.34	)
Net gain (loss) on investments (realized and unrealized)		2.65	e		1.40	e		(24.13	)		(37.74	)		2.42			(7.64	)
Total from investment operations		2.63			1.11			(24.87	)		(39.62	)		(.40	)		(9.98	)
Net asset value, end of period	$	43.08		$	40.45		$	39.34		$	64.21		$	103.83		$	104.23
Total Returnc		6.50	%		2.82	%		(38.77	%)		(38.17	%)		(0.29	%)		(8.78	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4		$	3		$	19		$	56		$	371		$	102
Ratios to average net assets:
Net investment income (loss)		(0.11	%)		(0.63	%)		(1.46	%)		(2.20	%)		(2.44	%)		(2.47	%)
Total expenses		2.92	%		2.53	%		2.49	%		2.48	%		2.50	%		2.48	%
Portfolio turnover rate		—			—			—			—			—			—

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	40.27		$	38.77		$	63.00		$	101.28		$	100.80		$	109.97
Income (loss) from investment operations:
Net investment income (loss)b		.13			.19			(.30	)		(1.23	)		(2.04	)		(1.68	)
Net gain (loss) on investments (realized and unrealized)		2.80	e		1.31	e		(23.93	)		(37.05	)		2.52			(7.49	)
Total from investment operations		2.93			1.50			(24.23	)		(38.28	)		.48			(9.17	)
Net asset value, end of period	$	43.20		$	40.27		$	38.77		$	63.00		$	101.28		$	100.80
Total Return		7.28	%		3.87	%		(38.46	%)		(37.80	%)		0.48	%		(8.35	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	360		$	1,756		$	743		$	890		$	26,336		$	23,091
Ratios to average net assets:
Net investment income (loss)		0.61	%		0.42	%		(0.68	%)		(1.46	%)		(1.65	%)		(1.71	%)
Total expenses		1.86	%		1.87	%		1.77	%		1.76	%		1.74	%		1.73	%
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2019. 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 years presented through March 31, 2017 have been restated to reflect a 1:6 reverse share split effective October 31, 2016.
e	The amount shown for a share outstanding throughout the period does not accord with the aggregate net losses on investments for the period because of the sales and repurchases of Fund shares in relation to fluctuating market value of the investments of the fund.

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

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) September 30, 2019

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

The Fund invests principally in derivative instruments such as swap agreements and futures contracts.

Average Annual Returns^*

Periods Ended September 30, 2019

	6 Month†	1 Year	5 Year	Since Inception (10/08/13)
A-Class Shares	3.58%	9.38%	2.77%	2.12%
A-Class Shares with sales charge‡	(1.35%)	4.19%	1.78%	1.29%
C-Class Shares	3.18%	8.56%	1.93%	1.27%
C-Class Shares with CDSC§	2.18%	7.56%	1.93%	1.27%
H-Class Shares	3.57%	9.40%	2.75%	2.04%
ICE BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index	5.10%	10.87%	5.15%	5.70%

*	The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include changes in principal and reinvested dividends and capital gains and do not reflect the effect of taxes. The ICE BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index is an unmanaged index and, unlike the Fund, has no management fees or operating expenses to reduce its reported return.
†	6 month returns are not annualized.
‡	Fund returns are calculated using the maximum sales charge of 4.75%.
§	Fund returns include a CDSC of 1% if redeemed within 12 months of purchase.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 45

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2019
EMERGING MARKETS BOND STRATEGY FUND

	Face Amount		Value
U.S. TREASURY BILLS†† - 0.4%
U.S. Treasury Bills
1.93% due 10/29/191,2	$	34,000	$	33,951
Total U.S. Treasury Bills
(Cost $33,948)				33,951
REPURCHASE AGREEMENTS††,3 - 93.3%
JPMorgan Chase & Co. issued 09/30/19 at 2.35% due 10/01/194		5,269,148		5,269,148
Bank of America Merrill Lynch issued 09/30/19 at 2.28% due 10/01/194		1,694,382		1,694,382
Barclays Capital issued 09/30/19 at 2.00% due 10/01/194		1,524,944		1,524,944
Total Repurchase Agreements
(Cost $8,488,474)				8,488,474
Total Investments - 93.7%
(Cost $8,522,422)			$	8,522,425
Other Assets & Liabilities, net - 6.3%				574,360
Total Net Assets - 100.0%			$	9,096,785

Futures Contracts
Description	Number of Contracts		Expiration Date		Notional Amount		Value and Unrealized Depreciation**
Interest Rate Futures Contracts Purchased†
U.S. Treasury 10 Year Note Futures Contracts		10		Dec 2019	$	1,303,281	$	(11,173	)
U.S. Treasury 5 Year Note Futures Contracts		19		Dec 2019		2,263,969		(12,025	)
					$	3,567,250	$	(23,198	)

Centrally Cleared Credit Default Swap Agreements Protection Sold††
Counterparty	Exchange	Index	Protection Premium Rate			Payment Frequency		Maturity Date	Notional Amount		Value			Upfront Premiums Received			Unrealized Appreciation**
Barclays Bank plc	ICE	CDX.EM.32 Index		1.00	%	Quarterly	12/20/24		$	5,200,000	$	(263,120	)	$	(283,976	)	$	20,856

Total Return Swap Agreements
Counterparty	Index	Financing Rate Pay			Payment Frequency	Maturity Date		Units		Notional Amount		Value and Unrealized Depreciation
OTC Credit Swap Agreements††
Goldman Sachs International	iShares JPMorgan USD Emerging Markets Bond ETF Swap5		2.37	%	At Maturity		10/25/19		27,288	$	3,093,095	$	(3,547	)
Goldman Sachs International	Invesco Emerging Markets Sovereign Debt Portfolio ETF Swap6		2.47	%	At Maturity		10/25/19		76,967		2,243,588		(4,618	)
										$	5,336,683	$	(8,165	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2019
EMERGING MARKETS BOND STRATEGY FUND

**	Includes cumulative appreciation (depreciation). Variation margin is reported within the Statement of Assets and Liabilities.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is pledged as futures collateral at September 30, 2019.
2	Rate indicated is the effective yield at the time of purchase.
3	Repurchase Agreements — See Note 6.
4	All or a portion of this security is pledged as credit index swap collateral at September 30, 2019.
5	Total Return based on iShares JPMorgan USD Emerging Markets Bond ETF +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2019.
6	Total Return based on Invesco Emerging Markets Sovereign Debt Portfolio ETF +/- financing at a variable rate. Rate indicated is the rate effective at September 30, 2019.
	CDX.EM.32 Index — Credit Default Swap Emerging Markets Series 32 Index
	ICE — Intercontinental Exchange
	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, 2019 (See Note 4 in the Notes to Financial Statements):

Investments in Securities (Assets)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
U.S. Treasury Bills	$	—	$	33,951	$	—	$	33,951
Repurchase Agreements		—		8,488,474		—		8,488,474
Credit Default Swap Agreements**		—		20,856		—		20,856
Total Assets	$	—	$	8,543,281	$	—	$	8,543,281

Investments in Securities (Liabilities)	Level 1 Quoted Prices		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total
Interest Rate Futures Contracts**	$	23,198	$	—	$	—	$	23,198
Credit Index Swap Agreements**		—		8,165		—		8,165
Total Liabilities	$	23,198	$	8,165	$	—	$	31,363

^** This derivative is reported as unrealized appreciation/depreciation at period end.

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

EMERGING MARKETS BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

September 30, 2019

Assets:
Investments, at value (cost $33,948)	$	33,951
Repurchase agreements, at value (cost $8,488,474)		8,488,474
Segregated cash with broker		1,151,376
Receivables:
Variation margin on credit default swap agreements		12,970
Protection fees on credit default swaps		1,803
Interest		536
Fund shares sold		200
Total assets		9,689,310
Liabilities:
Unamortized upfront premiums received on credit default swap agreements		283,976
Unrealized depreciation on OTC swap agreements		8,165
Payable for:
Fund shares redeemed		242,305
Securities purchased		35,452
Management fees		5,429
Distribution and service fees		1,856
Transfer agent and administrative fees		1,810
Swap settlement		1,788
Variation margin on futures contracts		1,447
Portfolio accounting fees		1,086
Trustees’ fees*		173
Miscellaneous		9,038
Total liabilities		592,525
Commitments and contingent liabilities (Note 11)		—
Net assets	$	9,096,785
Net assets consist of:
Paid in capital	$	8,613,045
Total distributable earnings (loss)		483,740
Net assets	$	9,096,785
A-Class:
Net assets	$	423,780
Capital shares outstanding		5,459
Net asset value per share	$	77.63
Maximum offering price per share (Net asset value divided by 95.25%)	$	81.50
C-Class:
Net assets	$	69,939
Capital shares outstanding		954
Net asset value per share	$	73.31
H-Class:
Net assets	$	8,603,066
Capital shares outstanding		111,469
Net asset value per share	$	77.18

STATEMENT OF OPERATIONS (Unaudited)

Period Ended September 30, 2019

Investment Income:
Interest	$	94,908
Total investment income		94,908
Expenses:
Management fees		34,063
Distribution and service fees:
A-Class		296
C-Class		655
H-Class		10,898
Transfer agent and administrative fees		11,355
Portfolio accounting fees		6,814
Registration fees		3,604
Trustees’ fees*		1,138
Custodian fees		640
Miscellaneous		6,560
Total expenses		76,023
Net investment income		18,885
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		72,098
Futures contracts		230,642
Net realized gain		302,740
Net change in unrealized appreciation (depreciation) on:
Investments		3
Swap agreements		54,045
Futures contracts		(101,357	)
Net change in unrealized appreciation (depreciation)		(47,309	)
Net realized and unrealized gain		255,431
Net increase in net assets resulting from operations	$	274,316

^* 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.

EMERGING MARKETS BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2019 (Unaudited)			Year Ended March 31, 2019
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	18,885		$	6,411
Net realized gain on investments		302,740			278,777
Net change in unrealized appreciation (depreciation) on investments		(47,309	)		28,326
Net increase in net assets resulting from operations		274,316			313,514
Capital share transactions:
Proceeds from sale of shares
A-Class		791,342			802,223
C-Class		145,330			562,652
H-Class		3,577,681			12,481,943
Cost of shares redeemed
A-Class		(1,128,700	)		(161,079	)
C-Class		(143,049	)		(571,192	)
H-Class		(4,466,630	)		(4,195,724	)
Net increase (decrease) from capital share transactions		(1,224,026	)		8,918,823
Net increase (decrease) in net assets		(949,710	)		9,232,337
Net assets:
Beginning of period		10,046,495			814,158
End of period	$	9,096,785		$	10,046,495
Capital share activity:
Shares sold
A-Class		10,214			10,840
C-Class		2,039			8,050
H-Class		46,718			173,562
Shares redeemed
A-Class		(14,913	)		(2,266	)
C-Class		(1,921	)		(8,390	)
H-Class		(59,047	)		(58,196	)
Net increase (decrease) in shares		(16,910	)		123,600

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

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, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	74.95		$	73.42		$	71.93		$	72.75		$	81.52		$	100.68
Income (loss) from investment operations:
Net investment income (loss)b		.17			.10			(.55	)		(.91	)		1.12			(1.44	)
Net gain (loss) on investments (realized and unrealized)		2.51			1.43			2.13			3.87			2.23			(3.76	)
Total from investment operations		2.68			1.53			1.58			2.96			3.35			(5.20	)
Less distributions from:
Net investment income		—			—			(.09	)		(3.70	)		(12.12	)		(13.96	)
Net realized gains		—			—			—			(.08	)		—			—
Total distributions		—			—			(.09	)		(3.78	)		(12.12	)		(13.96	)
Net asset value, end of period	$	77.63		$	74.95		$	73.42		$	71.93		$	72.75		$	81.52
Total Returnc		3.58	%		2.08	%		2.18	%		4.62	%		5.13	%		(5.31	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	424		$	761		$	116		$	113		$	259		$	39
Ratios to average net assets:
Net investment income (loss)		0.43	%		0.14	%		(0.74	%)		(1.19	%)		1.59	%		(1.50	%)
Total expenses		1.67	%		1.66	%		1.58	%		1.58	%		1.58	%		1.71	%
Portfolio turnover rate		—			—			—			733	%		21,555	%		655	%

C-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	71.05		$	70.12		$	69.22		$	70.54		$	80.35		$	100.37
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.54	)		(1.06	)		(1.10	)		(1.00	)		(1.80	)
Net gain (loss) on investments (realized and unrealized)		2.39			1.47			2.05			3.56			3.31			(4.26	)
Total from investment operations		2.26			.93			.99			2.46			2.31			(6.06	)
Less distributions from:
Net investment income		—			—			(.09	)		(3.70	)		(12.12	)		(13.96	)
Net realized gains		—			—			—			(.08	)		—			—
Total distributions		—			—			(.09	)		(3.78	)		(12.12	)		(13.96	)
Net asset value, end of period	$	73.31		$	71.05		$	70.12		$	69.22		$	70.54		$	80.35
Total Returnc		3.18	%		1.33	%		1.41	%		4.09	%		3.73	%		(6.19	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	70		$	59		$	82		$	90		$	129		$	34
Ratios to average net assets:
Net investment income (loss)		(0.34	%)		(0.79	%)		(1.49	%)		(1.54	%)		(1.33	%)		(1.85	%)
Total expenses		2.41	%		2.37	%		2.34	%		2.33	%		2.32	%		2.24	%
Portfolio turnover rate		—			—			—			733	%		21,555	%		655	%

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2019a			Year Ended March 31, 2019			Year Ended March 29, 2018			Year Ended March 31, 2017d			Year Ended March 31, 2016d			Year Ended March 31, 2015d
Per Share Data
Net asset value, beginning of period	$	74.52		$	72.98		$	71.51		$	72.19		$	81.18		$	100.73
Income (loss) from investment operations:
Net investment income (loss)b		.16			.23			(.55	)		(.28	)		(.44	)		(1.56	)
Net gain (loss) on investments (realized and unrealized)		2.50			1.31			2.11			3.38			3.57			(4.03	)
Total from investment operations		2.66			1.54			1.56			3.10			3.13			(5.59	)
Less distributions from:
Net investment income		—			—			(.09	)		(3.70	)		(12.12	)		(13.96	)
Net realized gains		—			—			—			(.08	)		—			—
Total distributions		—			—			(.09	)		(3.78	)		(12.12	)		(13.96	)
Net asset value, end of period	$	77.18		$	74.52		$	72.98		$	71.51		$	72.19		$	81.18
Total Return		3.57	%		2.11	%		2.19	%		4.85	%		4.82	%		(5.74	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,603		$	9,226		$	615		$	472		$	212		$	153
Ratios to average net assets:
Net investment income (loss)		0.43	%		0.32	%		(0.75	%)		(0.38	%)		(0.55	%)		(1.64	%)
Total expenses		1.66	%		1.70	%		1.58	%		1.54	%		1.56	%		1.74	%
Portfolio turnover rate		—			—			—			733	%		21,555	%		655	%

a	Unaudited figures for the period ended September 30, 2019. 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 March 31, 2017 have been restated to reflect a 1:4 reverse share split effective November 7, 2016.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1 – Organization and Significant Accounting Policies

Organization

The Rydex Series Funds (the “Trust”), a Delaware statutory trust, is registered with the SEC under the Investment Company Act of 1940 (”1940 Act”), as an open-ended investment company of the series type. Each series, in effect, is representing a separate Fund (each, a “Fund” and collectively, the “Funds”). 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. C-Class shares of each Fund automatically convert to A-Class shares of the same Fund on or about the 10th day of the month following the 10-year anniversary of the purchase of the C-Class shares. This conversion will be executed without any sales charge, fee or other charge. After the conversion is completed, the shares will be subject to all features and expenses of A-Class shares. Institutional Class shares are offered primarily for direct investment by institutions such as pension and profit sharing plans, endowments, foundations and corporations. Institutional Class shares require a minimum initial investment of $2 million and a minimum account balance of $1 million. At September 30, 2019, the Trust consisted of fifty-two funds.

This report covers the following Funds:

Fund Name	Investment Company Type
Long Short Equity Fund	Non-diversified
Emerging Markets 2x Strategy Fund	Non-diversified
Inverse Emerging Markets 2x Strategy Fund	Non-diversified
Emerging Markets Bond Strategy Fund	Non-diversified

At September 30, 2019, A-Class, C-Class, H-Class, P-Class and Institutional Class shares have been issued by the Funds.

The Emerging Markets 2x Strategy Fund, lnverse Emerging Markets 2x Strategy Fund, and Emerging Markets Bond Strategy Fund are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

Security Investors, LLC, which operates under the name Guggenheim Investments (“GI”), provides advisory services. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI and GFD are affiliated entities.

Significant Accounting Policies

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

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

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

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the September 30, 2019, afternoon NAV.

(a) Valuation of Investments

The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation Procedures,

52 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

including, under most circumstances, the responsibility for determining the fair value of the Funds’ securities and/or other assets.

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

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

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

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

Money market funds are valued at their NAV.

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.

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

The value of futures contracts is accounted for using the unrealized appreciation or depreciation on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the official settlement price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The values of other swap agreements entered into by a fund are accounted for using the unrealized appreciation or depreciation on the agreements that are determined by marking the agreements to the last quoted value of the index or other underlying position that the swaps pertain to at the close of the NYSE.

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

In connection with futures contracts and other derivative investments, such factors may include obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

(b) U.S. Government and Agency Obligations

Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

(c) Short Sales

When a Fund engages in a short sale of a security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales.

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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 53

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

(d) Futures Contracts

Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized appreciation or depreciation. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

(e) Swap Agreements

Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized appreciation or depreciation. Payments received or made as a result of an agreement or termination of an agreement are recognized as realized gains or losses.

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) Currency Translations

The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars at prevailing exchange rates. Purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions.

Changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to foreign government exchange restrictions, expropriation, taxation, or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments.

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

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

(g) Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income and foreign taxes on capital gains from sales of investments are included with the net realized gain (loss) on investments. Foreign taxes payable or deferred as of September 30, 2019, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.

(h) Security Transactions

Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as a reduction to cost if the securities are still held and as realized gains if no longer held in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Dividend income from Real Estate Investment Trusts (“REITs”) is recorded based on the income included in the distributions received from the REIT investments using published REIT classifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to realized gains. The actual amounts of income, return of capital, and realized gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

(i) Distributions

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

54 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

(j) Class Allocations

Interest and dividend income, most expenses, all realized gains and losses, and all unrealized appreciation and depreciation are allocated to the classes based upon the value of the outstanding shares in each Class. Certain costs, such as distribution and service fees are charged directly to specific classes. In addition, certain expenses have been allocated to the individual Funds in the Trust based on the respective net assets of each Fund included in the Trust.

(k) Cash

The Funds may leave cash overnight in their cash account with the custodian. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate, which was 1.90% at September 30, 2019.

(l) Indemnifications

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

Note 2 – Financial Instruments and Derivatives 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 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:

Duration: the use of an instrument to manage the interest rate risk of a portfolio.

Index Exposure: the use of an instrument to obtain exposure to a listed or other type of index.

Leverage: gaining total exposure to equities or other assets on the long and short sides at greater than 100% of invested capital.

Liquidity: the ability to buy or sell exposure with little price/market impact.

For any Fund whose investment strategy consistently involves applying leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index or other asset. In addition, because an investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, an opportunity for increased net income is created; but, at the same time, leverage risk will increase. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

Futures Contracts

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 55

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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 Amount
Fund	Use	Long		Short
Emerging Markets 2x Strategy Fund	Index Exposure, Leverage, Liquidity	$	213,453	$	—
Emerging Markets Bond Strategy Fund	Duration, Index Exposure, Leverage, Liquidity		4,396,789		—

Swap Agreements

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. When utilizing OTC swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying asset declines in value. Certain standardized swaps are subject to mandatory central clearing and are executed on a multi-lateral or other trade facility platform, such as a registered exchange. There is limited counterparty credit risk with respect to centrally-cleared swaps as the transaction is facilitated through a central clearinghouse, much like exchange-traded futures contracts. Upon entering into certain centrally-cleared swap transactions, the Fund is required to deposit with its clearing broker an amount of cash or securities as an initial margin. Subsequent variation margin payments or receipts are made or received by the Fund, depending on fluctuations in the fair value of the reference entity. For a fund utilizing centrally cleared swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. There is no guarantee that a fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Total return and custom basket swaps involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset (such as an index or custom basket of securities) for a fixed or variable interest rate. Total return and custom basket swaps will usually be computed based on the current value of the reference asset as of the close of regular trading on the NYSE or other exchange, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. When utilizing total return or custom basket swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty or if the underlying reference asset declines in value.

The following table represents the Funds’ use and volume of total return and custom basket swaps on a quarterly basis:

		Average Notional Amount
Fund	Use	Long		Short
Long Short Equity Fund	Index Exposure, Liquidity	$	8,549,008	$	18,170,419
Emerging Markets 2x Strategy Fund	Index Exposure, Leverage, Liquidity		7,442,785		—
Inverse Emerging Markets 2x Strategy Fund	Index Exposure, Leverage, Liquidity		—		2,178,019
Emerging Markets Bond Strategy Fund	Duration, Index Exposure, Leverage, Liquidity		4,765,189		—

Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A fund enters into credit default swaps as a “seller” or “buyer” of protection primarily to gain or reduce exposure to the high yield bond market. A seller of credit default swaps is selling credit protection or assuming credit risk with respect to the underlying entity or entities. The buyer in a credit default swap is obligated to pay the seller a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If a credit event occurs, as defined under the terms of the swap agreement, the seller will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The Notional Amount reflects the maximum potential amount the seller of credit protection could be required to pay to the buyer if a credit event occurs. The seller of protection receives periodic premium payments from the buyer and may also receive or pay an upfront premium adjustment to the stated periodic payments. In the event a credit default occurs on a credit default swap referencing an index, a factor adjustment will take place and the buyer of protection will receive a payment reflecting the par less the default recovery rate of

56 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

the defaulted index component based on its weighting in the index. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the fund selling the credit protection. For a fund utilizing centrally cleared credit default swaps, the exchange bears the risk of loss resulting from a counterparty not being able to pay. For OTC credit default swaps, a fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which a fund is selling credit protection, the default of a third party issuer.

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The following table represents the Funds’ use and volume of credit default swaps on a quarterly basis:

		Average Notional Amount
Fund	Use	Protection Purchased		Protection Sold
Emerging Markets Bond Strategy Fund	Duration, Index Exposure, Leverage, Liquidity	$	—	$	6,350,000

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, 2019:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Interest Rate contracts	Unrealized appreciation on OTC swap agreements	Unrealized depreciation on OTC swap agreements
		Variation margin on futures contracts
Credit contracts	Unrealized appreciation on swap agreements Variation margin on credit default swap agreements	Unamortized upfront premiums received on credit default swap agreements

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at September 30, 2019:

Asset Derivative Investments Value
Fund	Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk		Total Value at September 30, 2019
Long Short Equity Fund	$	181,153	$	—	$	—	$	181,153
Emerging Markets Bond Strategy Fund		—		—		20,856		20,856
Inverse Emerging Markets 2x Strategy Fund		12,446		—		—		12,446

Liability Derivative Investments Value
Fund	Swaps Equity Risk		Futures Interest Rate Risk*		Swaps Credit Risk		Total Value at September 30, 2019
Long Short Equity Fund	$	580,017	$	—	$	—	$	580,017
Emerging Markets 2x Strategy Fund		66,642		—		—		66,642
Emerging Markets Bond Strategy Fund		—		23,198		8,165		31,363

^* Includes cumulative appreciation (depreciation) of exchange-traded, OTC and centrally cleared derivatives as reported on the Schedules of Investments. For exchange-traded and centrally cleared derivatives, variation margin is reported within the Statements of Assets and Liabilities.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 57

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the period ended September 30, 2019:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Currency/Interest Rate/Commodity 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, 2019:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk		Swaps Credit Risk			Total
Long Short Equity Fund	$	—		$	(784,382	)	$	—	$	—		$	(784,382	)
Emerging Markets 2x Strategy Fund		(89,331	)		(2,847,129	)		—		—			(2,936,460	)
Inverse Emerging Markets 2x Strategy Fund		1,340			(72,337	)		—		—			(70,997	)
Emerging Markets Bond Strategy Fund		—			175,455			230,642		(103,357	)		302,740

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Risk			Swaps Equity Risk			Futures Interest Rate Risk			Swaps Credit Risk		Total
Long Short Equity Fund	$	—		$	(331,282	)	$	—		$	—	$	(331,282	)
Emerging Markets 2x Strategy Fund		(185	)		(249,260	)		—			—		(249,445	)
Inverse Emerging Markets 2x Strategy Fund		—			53,538			—			—		53,538
Emerging Markets Bond Strategy Fund		—			(12,995	)		(101,357	)		67,040		(47,312	)

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. Depending on the financial instrument utilized and the broker involved, the Funds use margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or repurchase agreements allocated to the Funds as collateral.

Foreign Investments

There are several risks associated with exposure to foreign currencies, foreign issuers and emerging markets. A fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad. In addition, the 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.

The Funds may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and exchange-traded funds, which are indirectly linked to the performance of foreign issuers. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Investing in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers, may involve risks not typically associated with investing in U.S. issuers. The value of securities denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally

58 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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.

Note 3 – Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received from or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Cash and/or securities pledged or received as collateral by the Funds in connection with an OTC derivative subject to an ISDA Master Agreement generally may not be invested, sold or rehypothecated by the counterparty or the Funds, as applicable, absent an event of default under such agreement, in which case such collateral generally may be applied towards obligations due to and payable by such counterparty or the Funds, as applicable. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 59

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements:

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments			Cash Collateral Received		Net Amount
Long Short Equity Fund	Custom basket swap agreements	$	181,153	$	—	$	181,153	$	(181,153	)	$	—	$	—
Inverse Emerging Markets 2x Strategy Fund	Swap equity contracts		12,446		—		12,446		—			—		12,446

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset in the Statements of Assets and Liabilities		Net Amount of Liabilities Presented on the Statements of Assets and Liabilities		Financial Instruments			Cash Collateral Pledged		Net Amount
Long Short Equity Fund	Custom basket swap agreements	$	580,017	$	—	$	580,017	$	(580,017	)	$	—	$	—
Emerging Markets 2x Strategy Fund	Swap equity contracts		66,642		—		66,642		(34,336	)		—		32,306
Emerging Markets Bond Strategy Fund	Swap equity contracts		8,165		—		8,165		(8,165	)		—		—

¹ Exchange-traded or centrally-cleared derivatives are excluded from these reported amounts.

The Funds have the right to offset deposits against any related derivative liabilities outstanding with each counterparty with the exception of exchange-traded or centrally-cleared derivatives. The following table presents deposits held by others in connection with derivative investments as of September 30, 2019.

Fund	Counterparty	Asset Type	Cash Pledged		Cash Received
Emerging Markets Bond Strategy Fund	Barclays Bank plc	Credit default swap agreements	$	1,151,376	$	—

Note 4 – Fair Value Measurement

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

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

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

60 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

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

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

Note 5 – Investment Advisory Agreement and Other Agreements

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

Fund	Management Fees (as a % of Net Assets)
Long Short Equity Fund		0.90	%
Emerging Markets 2x Strategy Fund		0.90	%
Inverse Emerging Markets 2x Strategy Fund		0.90	%
Emerging Markets Bond Strategy Fund		0.75	%

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

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

GI 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, 2019, GFD retained sales charges of $45,539 relating to sales of A-Class shares of the Trust.

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 61

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

MUFG Investor Services (US), LLC (“MUIS”) acts as the Funds’ administrator, transfer agent and accounting agent. As administrator, transfer agent and accounting agent, MUIS is responsible for maintaining the books and records of the Funds’ securities and cash. U.S. Bank, N.A. (“U.S. Bank”) acts as the Funds’ custodian. As custodian, U.S. Bank is responsible for the custody of the Funds’ assets. For providing the aforementioned services, MUIS and U.S. Bank are entitled to receive a monthly fee equal to an annual percentage of each Fund’s average daily net assets and out of pocket expenses.

Note 6 – Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. government agencies. The joint account includes other Funds in the Guggenheim complex not covered in this report.The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2019, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value		Repurchase Price		Collateral	Par Value		Fair Value
JPMorgan Chase & Co.					U.S. Treasury Note
2.35%					1.75%
Due 10/01/19	$	194,737,402	$	194,750,114	06/30/22	$	196,919,400	$	198,632,205
Bank of America Merrill Lynch					U.S. TIP Note
2.28%					1.25%
Due 10/01/19		62,621,053		62,625,019	07/15/20		63,404,852		63,873,490
Barclays Capital					U.S. Treasury Bond
2.00%					3.38%
Due 10/01/19		56,358,948		56,362,079	05/15/44		45,816,100		57,486,205

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

Note 7 – Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with U.S. Bank, cash collateral and proceeds are invested in the First American Government Obligations Fund — Class Z. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand. Securities lending transactions are accounted for as secured borrowings. The remaining contractual maturity of the securities lending agreement is overnight and continuous.

62 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2019, the Funds participated in securities lending transactions, which are subject to enforceable netting arrangements, as follows:

	Gross Amounts Not Offset in the Statements of Assets and Liabilities							Securities Lending Collateral
Fund	Value of Securities Loaned		Collateral Received(a)			Net Amount		Cash Collateral Invested		Cash Collateral Uninvested		Total Collateral
Long Short Equity Fund	$	119,034	$	(119,034	)	$	—	$	120,823	$	—	$	120,823
Emerging Markets 2x Strategy Fund		6,881		(6,881	)		—		6,946		—		6,946

^(a) Actual collateral received by the Fund is greater than the amount shown due to overcollateralization.

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

Note 8 – Federal Income Tax Information

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

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

At September 30, 2019, the cost of investments for U.S. federal income tax purposes, the aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost, and the aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Long Short Equity Fund	$	19,754,815	$	1,942,587	$	(1,359,873	)	$	582,714
Emerging Markets 2x Strategy Fund		3,902,192		224,637		(109,246	)		115,391
Inverse Emerging Markets 2x Strategy Fund		837,569		12,446		—			12,446
Emerging Markets Bond Strategy Fund		8,522,422		20,859		(31,363	)		(10,504	)

Note 9 – Securities Transactions

For the period ended September 30, 2019, 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	$	7,851,839	$	10,912,245
Emerging Markets 2x Strategy Fund		35,012,362		38,423,446

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 63

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. 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, 2019, the Funds engaged in purchases and sales of securities, pursuant to Rule 17a-7 of the 1940 Act, as follows:

Fund	Purchases		Sales		Realized Gain (Loss)
Emerging Markets 2x Strategy Fund	$	53,326	$	375,562	$	(11,817	)

Note 10 – Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted $75,000,000 line of credit from U.S. Bank, N.A., which expires June 8, 2020. 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 3.41% for the period ended September 30, 2019. The Funds did not have any borrowings outstanding under this agreement at September 30, 2019.

The average daily balances borrowed for the period ended September 30, 2019, were as follows:

Fund	Average Daily Balance
Emerging Markets 2x Strategy Fund	$	3,186

Note 11 – Legal Proceedings

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

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

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2296 (S.D.N.Y.) (the “MDL Proceeding”).

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

On March 29, 2016, the U.S. Court of Appeals for the Second Circuit issued its opinion on the appeal of the SLCFC actions. The appeals court affirmed the district court’s dismissal of those lawsuits, but on different grounds than the district court. The appeals court held that while the plaintiffs have standing under the U.S. Bankruptcy Code, their claims were preempted by Section 546(e) of the Bankruptcy Code—the statutory safe harbor for settlement payments.

64 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

On April 12, 2016, the Plaintiffs in the SLCFC actions filed a petition seeking rehearing en banc before the appeals court. On July 22, 2016, the appeals court denied the petition. On September 9, 2016, the plaintiffs filed a petition for writ of certiorari in the U.S. Supreme Court challenging the Second Circuit’s decision that the safe harbor of Section 546(e) applied to their claims. The shareholder defendants, including the Funds, filed a joint brief in opposition to the petition for certiorari on October 24, 2016. On April 3, 2018, Justice Kennedy and Justice Thomas issued a “Statement” related to the petition for certiorari suggesting that the Second Circuit and/or District Court may want to take steps to reexamine the application of the Section 546(e) safe harbor to the previously dismissed state law constructive fraudulent transfer claims based on the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. On April 10, 2018, Plaintiffs filed in the Second Circuit a motion for that court to recall its mandate, vacate its prior decision, and remand to the district court for further proceedings consistent with Merit Management. On April 20, 2018, the shareholder defendants filed an opposition to Plaintiffs’ motion to recall the mandate. On May 15, 2018, the Second Circuit issued an order recalling the mandate “in anticipation of further panel review.”

On May 23, 2014, the defendants filed motions to dismiss the FitzSimons action, including a global motion to dismiss Count I, which is the claim brought against former Tribune shareholders for intentional fraudulent conveyance under U.S. federal law. On January 6, 2017, the United States District Court for the Southern District of New York granted the shareholder defendants’ motion to dismiss the intentional fraudulent conveyance claim in the FitzSimons action. In dismissing the intentional fraudulent conveyance claim, the Court denied the plaintiff’s request to amend the complaint. The plaintiff requested that the Court direct entry of a final judgment in order to make the order immediately appealable. On February 23, 2017, the Court issued an order stating that it intends to permit an interlocutory appeal of the dismissal order, but would wait to do so until it has resolved outstanding motions to dismiss filed by other defendants.

On July 18, 2017, the plaintiff submitted a letter to the District Court seeking leave to amend its complaint to add a constructive fraudulent transfer claim. The shareholder defendants opposed that request. On August 24, 2017, the Court denied the plaintiff’s request without prejudice to renewal of the request in the event of an intervening change in the law. On March 8, 2018, the plaintiff renewed his request for leave to file a motion to amend the complaint to assert a constructive fraudulent transfer claim based on the Supreme Court’s ruling in Merit Management Group LP v. FTI Consulting, Inc. The shareholder defendants opposed that request. On June 18, 2018 the District Court ordered that the request would be stayed pending further action by the Second Circuit in the SLCFC actions.

On December 18, 2018, plaintiff filed a letter with the District Court requesting that the stay be dissolved in order to permit briefing on the motion to amend the complaint and indicating plaintiff’s intention to file another motion to amend the complaint to reinstate claims for intentional fraudulent transfer. The shareholder defendants opposed that request. On January 14, 2019, the court held a case management conference, during which the court stated that it would not lift the stay prior to further action from the Second Circuit in the SLCFC actions. The court further stated that it would allow the plaintiff to file a motion to amend to try to reinstate its intentional fraudulent transfer claim. On January 23, 2019, the court ordered the parties still facing pending claims to participate in a mediation, to commence on January 28, 2019. The mediation did not result in a settlement of the claims against the shareholder defendants.

On April 4, 2019, plaintiff filed a motion to amend the Fifth Amended Complaint to assert a federal constructive fraudulent transfer claim against certain shareholder defendants. On April 10, 2019, the shareholder defendants filed a brief in opposition to plaintiff’s motion to amend. On April 12, 2019, the plaintiff filed a reply brief. On April 23, 2019, the court denied the plaintiff’s motion to amend. On June 13, 2019, the court entered judgment pursuant to Rule 54(b). On July 12, 2019, the Plaintiff filed a notice of appeal with respect to the dismissal of his claims and the District Court’s denial of his motion for leave to amend.

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

Note 12 – Subsequent Events

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 65

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.

Special Meeting of Shareholders — Voting Results

A joint special meeting of shareholders of the Trust was held on October 24, 2019 to elect the following ten nominees to the Board of Trustees of the Trust: Randall C. Barnes, Angela Brock-Kyle, Donald A. Chubb, Jr., Jerry B. Farley, Roman Friedrich III, Thomas F. Lydon, Jr., Ronald A. Nyberg, Sandra G. Sponem, Ronald E. Toupin, Jr. and Amy J. Lee. At the meeting, the following votes were recorded:

Nominee	Shares For		Shares Withheld
Randall C. Barnes		182,013,322		3,038,253
Angela Brock-Kyle		182,013,119		3,038,456
Donald A. Chubb, Jr.		182,008,520		3,043,055
Jerry B. Farley		181,911,245		3,140,330
Roman Friedrich III		181,912,825		3,138,750
Thomas F. Lydon, Jr.		181,907,886		3,143,689
Ronald A. Nyberg		181,907,937		3,143,638
Sandra G. Sponem		181,907,670		3,143,905
Ronald E. Toupin, Jr.		181,906,696		3,144,879
Amy J. Lee		182,013,277		3,038,298

Corey A. Colehour and J. Kenneth Dalton resigned from the Board of Trustees of the Trust effective as of the conclusion of the quarterly meeting of the Board of Trustees of the Trust held on November 11, 2019.

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 Investment Advisory Agreement

The Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”), each of whom is not an “interested person,” as defined by the Investment Company Act of 1940 (the “1940 Act”), of the Trust (the “Independent Trustees”), attended an in-person meeting held on May 20, 2019 (the “May Meeting”), called for the purpose of, among other things, the consideration of, and voting on, the approval and continuation of the Advisory Agreement dated March 1, 2012, as amended, between the Trust and Security Investors, LLC (the “Advisor”), pursuant to which the Advisor serves as investment adviser to each series of the Trust (each, a “Fund” and collectively, the “Funds”)(the “Advisory Agreement”). Consistent with its practice, the Board considered information pertaining to the renewal of the Advisory Agreement at an in-person meeting held on April 24, 2019 (the “April Meeting” and, together with the May Meeting, the “Meetings”). After careful consideration, the Board unanimously approved, at the May Meeting, the continuance of the Advisory Agreement for an additional one-year term based on the Board’s review of

66 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

qualitative and quantitative information provided by the Advisor. In the course of its consideration, the Board deemed the materials provided by the Advisor at, and prior to, the Meetings to be instrumental in the Trustees’ deliberations and their process in considering the continuation of the Advisory Agreement. The Board also considered the review it conducted at each Meeting, as augmented by additional teleconference meetings prior to each Meeting, to be integral to its consideration of the continuation of the Advisory Agreement.

Prior to reaching the conclusion to approve the continuation of the Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as they deemed reasonably necessary to evaluate the Advisory Agreement. In addition, the Board received a memorandum from independent legal counsel to the Independent Trustees regarding the Board’s fiduciary responsibilities under state and federal law with respect to the Board’s consideration of the continuation of the Advisory Agreement, and participated in discussions with representatives of the Advisor during which the representatives answered the Independent Trustees’ questions and agreed to provide certain additional information for their consideration. 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 comparative information regarding the Funds’ fees, expenses, and performance relative to the fees, expenses, and performance of other comparable funds (the “FUSE reports”). In addition, at the April Meeting, the Board met with representatives of FUSE Research Network (“FUSE”), the independent third-party service provider engaged to prepare the FUSE reports, to review FUSE’s process and methodology for preparing the FUSE reports presented to the Board for its consideration, including in particular, the process for the selection of peer funds. The Independent Trustees carefully evaluated all of the information provided, 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 substantial commitment to the recruitment and retention of high quality personnel; (c) a comparison of the Funds’ advisory fees to the advisory fees charged to comparable funds or accounts; (d) each Fund’s overall fees and operating expenses compared with those of similar funds, and the existence of or potential for the realization of economies of scale; (e) the level of the Advisor’s profitability from its Fund-related operations; (f) the Advisor’s compliance processes and systems; (g) the Advisor’s compliance policies and procedures; (h) the Advisor’s reputation, expertise and resources in the financial markets; (i) Fund performance compared with that of similar funds and/or appropriate benchmarks; (j) other benefits to the Advisor and/or its affiliates from their relationship to the Funds; and (k) the Advisor’s maintenance of operational resources and relationships with third-party service providers, necessary to manage the Funds in a professional manner consistent with the best interests of the Funds and their shareholders. In its deliberations, the Trustees did not identify any particular factor or factors as 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 Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees for each Fund are reasonable in light of, and not so disproportionately large as to bear no reasonable relationship to, the services that it provides to each Fund; and (c) agreed to approve the continuation of the Advisory Agreement for an additional one-year term 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), enterprise and Fund risk management infrastructure and processes, brokerage practices, and the adequacy of its compliance systems and processes, proxy voting policies and practices, and cybersecurity program. The Board reviewed the scope of services provided by the Advisor under the Advisory Agreement and noted that there would be no significant differences between the scope of services 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 continuation of the Advisory Agreement would ensure shareholders of the Funds continue to receive high quality services at a cost that is 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. Part of the Board’s review focused on the information presented in the FUSE reports, which provided comparisons of the Funds’ fees, expenses, and total return performance with those of a peer group and peer universe of funds selected by FUSE. In the FUSE 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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 67

OTHER INFORMATION (Unaudited)(concluded)

or industry investment focus) determined by FUSE to comprise a Fund’s applicable peer group. The Board considered the Advisor’s opinion that it found the peer groups compiled by FUSE to be appropriate, but acknowledged the existence of certain key features of the Funds that differentiate them from their peer funds (e.g., specific differences in principal investment strategies, index rebalance frequency, and, in certain cases, the Fund’s tradability feature) that should be taken into consideration. With respect to tradability, in particular, the Board considered that non-tradable peer funds incur lower expense ratios than the tradable Funds because the non-tradable peer funds necessarily experience less shareholder activity and lower transaction volumes than the 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. The Board also considered recent fee trends produced, at least in part, by industry-wide pressure on fees, as well as the Trust’s niche registered investment adviser clientele. 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 Advisory Agreement for the last calendar year, noting the asset-based breakpoints implemented by the Advisor in June 2018 for the advisory fee rates for each series of the Trust (with the exception of the Trust’s Long Short Equity Fund, Managed Futures Strategy Fund and Multi-Hedge Strategies Fund (the “Alternative Funds”). In its review, the Board considered the direct revenue 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, which the Advisor confirmed was unchanged from the previous year. In its evaluation, the Board also considered the effect of the sale of Guggenheim’s ETF business in April 2018 on the Advisor’s and its affiliates’ profitability for the past year. The Board also considered the challenges currently affecting the sale of mutual funds, including the continued fall-out from the Department of Labor’s failed Fiduciary Rule, and alternative investment funds. 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 asset-based breakpoints in the fee schedule to the Advisory Agreement, effective June 1, 2018, and discussed certain of the Funds’ potential to benefit from the future realization of economies of scale. The Board noted the absence of breakpoints for the Trust’s Alternative Funds and the factors differentiating the Alternative Funds from the Trust’s other Funds. The Board agreed it would continue to monitor the performance of the Alternative Funds to determine whether breakpoints are warranted. The Board reviewed the terms of the breakpoints for the other Funds and noted that many of the Funds had not yet achieved sufficient asset levels to realize meaningful economies of scale. The Board also noted that it intends to monitor the asset levels and thresholds at which the breakpoints are set to determine if they continue to be appropriate in the future.

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 derived by the Advisor and its affiliates as a result of their relationship with the Funds, including any intangible benefits to the Advisor. In particular, the Board considered the nature, extent, quality, and cost of certain distribution and shareholder services performed by the Advisor’s affiliate, Guggenheim Funds Distributors, LLC, under separate distribution agreements, Distribution Plans and Distribution and Shareholder Services Plans 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 affiliate’s 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, unanimously concluded that the terms of the Advisory Agreement were reasonable, and that approval of the continuation of the Advisory Agreement for an additional one-year term was in the best interests of each Fund and its shareholders.

68 | 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 Trustees	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	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES
Randall C. Barnes (1951)	Trustee (November 2019-present).	Current: Private Investor (2001-present). Former: Senior Vice President and Treasurer, PepsiCo, Inc. (1993-1997); President, Pizza Hut International (1991-1993); Senior Vice President, Strategic Planning and New Business Development, PepsiCo, Inc. (1987-1990).	158	Current: Trustee, Purpose Investments Funds (2013-Present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).
Angela Brock-Kyle (1959)	Trustee and Member of the Audit Committee (2016-present); and Member of the Governance and Nominating Committee (2017-present).	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm). Former: Senior Leader, TIAA (financial services firm) (1987-2012).	157	None.
Donald A. Chubb, Jr. (1946)	Trustee (November 2019-present).	Current: Retired. Former: Business broker and manager of commercial real estate, Griffith & Blair, Inc. (1997-2017).	157	Former: Midland Care, Inc. (2011-2016).
Jerry B. Farley (1946)	Trustee (November 2019-present).	Current: President, Washburn University (1997-present).	157	Current: CoreFirst Bank & Trust (2000-Present). Former: Westar Energy, Inc. (2004-2018).
Roman Friedrich III (1946)	Trustee (November 2019-present).	Current: Founder and Managing Partner, Roman Friedrich & Company (1998-present).	157	Former: Zincore Metals, Inc. (2009-January 2019).
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit Committee (2005-present); and Chairman and Member of the Governance and Nominating Committee (2017-present).	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	157	Current: US Global Investors (GROW) (1995-present); and Harvest Volatility Edge Trust (3) (2017-present).

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 69

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

Name, Address* and Year of Birth of Trustees	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	Other Directorships Held by Trustees***
INDEPENDENT TRUSTEES - concluded
Ronald A. Nyberg (1953)	Trustee (November 2019-present).	Current: Partner, Momkus LLC (2016-present). Former: Partner, Nyberg & Cassioppi, LLC (2000-2016); Executive Vice President, General Counsel, and Corporate Secretary, Van Kampen Investments (1982-1999).	158	Current: PPM Funds (9) (2018 - present); Edward-Elmhurst Healthcare System (2012-present); Western Asset Inflation-Linked Opportunities & Income Fund (2004-present); Western Asset Inflation-Linked Income Fund (2003-present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).
Sandra G. Sponem (1958)	Trustee and Member of the Audit Committee (2016-present); Member of the Governance and Nominating Committee (2017-present); Chairwoman (January 2019-present) and Chairwoman of Audit Committee (November 2019-present)	Current: Retired. Former: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-2017).	157	Current: SPDR Series Trust (78) (2018-present); SPDR Index Shares Funds (31) (2018-present); SSGA Active Trust (12) (2018-present); and SSGA Master Trust (1) (2018-present).
Ronald E. Toupin, Jr. (1958)	Trustee (November 2019-present).	Current: Portfolio Consultant (2010-present); Member, Governing Council, Independent Directors Council (2013-present); Governor, Board of Governors, Investment Company Institute (2018-present). Former: Member, Executive Committee, Independent Directors Council (2016-2018); Vice President, Manager and Portfolio Manager, Nuveen Asset Management (1998-1999); Vice President, Nuveen Investment Advisory Corp. (1992-1999); Vice President and Manager, Nuveen Unit Investment Trusts (1991-1999); and Assistant Vice President and Portfolio Manager, Nuveen Unit Investment Trusts (1988-1999), each of John Nuveen & Co., Inc. (1982-1999).	157	Current: Western Asset Inflation-Linked Opportunities & Income Fund (2004-present); Western Asset Inflation-Linked Income Fund (2003-present). Former: Managed Duration Investment Grade Municipal Fund (2003-2016).

70 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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

Name, Address* and Year of Birth of Trustees	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	Other Directorships Held by Trustees***
INTERESTED TRUSTEE
Amy J. Lee**** (1961)	Trustee, Vice President and Chief Legal Officer (November 2019-present).	Current: Interested Trustee, certain other funds in the Fund Complex (2018-present); Chief Legal Officer, certain other funds in the Fund Complex (2014-present); Vice President, certain other funds in the Fund Complex (2007-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: President and Chief Executive Officer (2017- 2018); President, certain other funds in the Fund Complex (2017-November 2019); Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).	157	None.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 71

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
Brian E. Binder (1972)	President and Chief Executive Officer (November 2019-present)	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2018-present); President and Chief Executive Officer, Guggenheim Funds Investment Advisors, LLC and Security Investors, LLC (2018-present); Senior Managing Director and Chief Administrative Officer, Guggenheim Investments (2018-present). Former: Managing Director and President, Deutsche Funds, and Head of US Product, Trading and Fund Administration, Deutsche Asset Management (2013-2018); Managing Director, Head of Business Management and Consulting, Invesco Ltd. (2010-2012).
James M. Howley (1972)	Assistant Treasurer (2016-present)	Current: Managing Director, Guggenheim Investments (2004-present); Assistant Treasurer, certain other funds in the Fund Complex (2006-present). Former: Manager, Mutual Fund Administration of Van Kampen Investments, Inc. (1996-2004).
Mark E. Mathiasen (1978)	Secretary (2017-present)	Current: Secretary, certain other funds in the Fund Complex (2007-present); Managing Director, Guggenheim Investments (2007-present).
Glenn McWhinnie (1969)	Assistant Treasurer (2016-present)	Current: Vice President, Guggenheim Investments (2009-present); Assistant Treasurer, certain other funds in the Fund Complex (2016-present). Former: Tax Compliance Manager, Ernst & Young LLP (1996-2009).
Michael P. Megaris (1984)	Assistant Secretary (2018-present)	Current: Assistant Secretary, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2012-present).
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present)	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Security Investors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Investment Advisors, LLC (2012-2018); Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004-2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).
Margaux Misantone (1978)	AML Officer (2017-present)	Current: Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investment Advisors, LLC (2018-present); AML Officer, Security Investors, LLC and certain other funds in the Fund Complex (2017-present); Director, Guggenheim Investments (2013-present). Former: Assistant Chief Compliance Officer, Security Investors, LLC and Guggenheim Funds Investments Advisors, LLC (2015-2018).

72 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

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
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).
William Rehder (1967)	Assistant Vice President (2018-present)	Current: Managing Director, Guggenheim Investments (2002-present).
Kimberly J. Scott (1974)	Assistant Treasurer (2016-present)	Current: Director, Guggenheim Investments (2012-present); Assistant Treasurer, certain other funds in the Fund Complex (2012-present). Former: Financial Reporting Manager, Invesco, Ltd. (2010-2011); Vice President/Assistant Treasurer, Mutual Fund Administration for Van Kampen Investments, Inc./Morgan Stanley Investment Management (2009-2010); Manager of Mutual Fund Administration, Van Kampen Investments, Inc./Morgan Stanley Investment Management (2005-2009).
John L. Sullivan (1955)	Chief Financial Officer and Treasurer (2016-present)	Current: Chief Financial Officer, Chief Accounting Officer and Treasurer, certain other funds in the Fund Complex (2010-present); Senior Managing Director, Guggenheim Investments (2010-present). Former: Managing Director and Chief Compliance Officer, each of the funds in the Van Kampen Investments fund complex (2004-2010); Managing Director and Head of Fund Accounting and Administration, Morgan Stanley Investment Management (2002-2004); CFO and Treasurer, Van Kampen Funds (1996-2004).
Jon Szafran (1989)	Assistant Treasurer (2017-present)	Current: Vice President, Guggenheim Investments (2017-present); Assistant Treasurer, certain other funds in the Fund Complex (2017-present). Former: Assistant Treasurer of Henderson Global Funds and Manager of US Fund Administration, Henderson Global Investors (North America) Inc. (“HGINA”), (2017); Senior Analyst of US Fund Administration, HGINA (2014-2017); Senior Associate of Fund Administration, Cortland Capital Market Services, LLC (2013-2014); Experienced Associate, PricewaterhouseCoopers LLP (2012-2013).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 227 West Monroe Street, Chicago, Illinois 60606.
**	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.
***	Certain 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.
****	This Trustee is deemed to be an “interested person” of the Funds under the 1940 Act by reason of her position with the Funds’ Investment Manager and/or the parent of the Investment Manager.
*****	Each Trustee serves an indefinite term, until his or her successor is elected and qualified.

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 73

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)

Who We Are

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

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

Our Commitment to You

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

The Information We Collect About You

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

How We Handle Your Personal Information

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

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

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

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

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

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

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

74 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(continued)

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

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

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

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

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

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

Opt-Out Provisions and Your Data Choices

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT | 75

GUGGENHEIM INVESTMENTS PRIVACY NOTICE (Unaudited)(concluded)

How We Protect Privacy Online

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

How We Safeguard Your Personal Information and Data Retention

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

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

International Visitors

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

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

We’ll Keep You Informed

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

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

76 | THE RYDEX FUNDS SEMI-ANNUAL REPORT

This page intentionally left blank.

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 (as defined in Rule 30a-3(c) under the Investment Company Act) as of a date within 90 days of this filing and have concluded that based on such evaluation as required by Rule 30a-3(b) under the Investment Company Act, that the registrant’s disclosure controls and procedures were effective as of that date in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the registrant’s period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not Applicable.

Item 13. Exhibits.

(a)(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/ Brian Binder
		Brian Binder, President and Chief Executive Officer
Date	December 9, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*		/s/ Brian Binder
		Brian Binder, President and Chief Executive Officer
Date	December 9, 2019
By (Signature and Title)*		/s/ John L. Sullivan
		John L. Sullivan, Chief Financial Officer and Treasurer
Date	December 9, 2019

^* Print the name and title of each signing officer under his or her signature.