Fund Information

The Indexed Commodity Strategy Fund

The importance of non-correlation

Non-correlating assets help reduce volatility, while providing diversification and risk-adjusted returns for your investors' portfolios. Whether market volatility is high or low, investors should consider incorporating alternative assets that have low correlation to traditional investment vehicles into their portfolios.

The graph (below) compares the correlation of traditional asset classes to that of both the S&P 500® Index and the Direxion Commodity Trends Strategy Fund.

Correlation Analysis

As you can see, the Indexed Commodity Strategy Fund has historically performed independently of traditional asset classes, such as stocks and bonds. This non-correlation could allow portfolio volatility to be reduced when the fund is included as part of a well-balanced portfolio.

It is important to note that different time frames will result in different correlations.

The Russell Indexes noted herein are trademarks of Russell Investments and have been licensed for use by Direxion Funds. The fund is not sponsored, endorsed, sold or promoted by Russell Investments and Russell Investments makes no representation regarding the advisability of investing in the fund. The S&P indexes are trademarks of Standard and Poor's, a division of the McGraw Hill Companies, Inc. MSCI indexes are the exclusive property of MSCI and its affiliates. All rights reserved. Indexes are unmanaged and cannot be invested in directly.

Diversification does not guarantee protection against market losses or ensure a gain.

The Indexed Commodity
Startegy Fund

Why
Commodities

Why a Long/Short
Commodity Strategy?

Advantages

The total annual fund operating expense ratio of the Direxion Indexed Commodity Strategy Fund, gross of any fee waivers or expense reimbursements, as stated in the fee table of the funds prospectus is for the investor class is 1.30%, for the institutional class is 1.05% and for the C-Shares is 2.04%. The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. Returns for performance for one year and under are cumulative, not annualized. Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. For additional information, see the fund(s) prospectus.

An investor should consider the investment objectives, risks, charges, and expenses of the Direxion Funds carefully before investing. The prospectus and summary prospectus contain this and other information about Direxion Funds. To obtain a prospectus or summary prospectus, please contact the Direxion Funds at 800.851.0511. The prospectus or summary prospectus should be read carefully before investing.

Auspice Capital Advisors Ltd. is a registered Portfolio Manager / Investment Fund Manager in Canada and a registered Commodity Trading Advisor (CTA/CPO) and National Futures Association (NFA) member in the US.

Investing in funds that invest in specific industries or geographic regions may be more volatile than investing in broadly diversified funds. The principal risks of investing in the Direxion Indexed Commodity Strategy Fund are Risks of Investing in Commodity-Linked Derivatives, Risks of Investing in Wholly-owned Subsidiary, High Portfolio Turnover, Tax Risk, Risk of Tracking Error, Risks of Aggressive Investment Techniques, Leverage Risk, Derivatives Risks, Counterparty Risks, Risk of Non-Diversification, Risks of Investing in Other Investment Companies and ETFs, Adverse Market Conditions, Risks of Investing in Equity Securities, Credit Risk and Concentration Risk.

Distributor: Rafferty Capital Markets, LLC.

Date of First Use: February 1, 2012