Dynamic HY Bond Fund

PDHYX

HY Bear Fund

PHBRX

Symbol	Fund	Index/Benchmark
PDHYX	Dynamic HY Bond Fund	Total Return in High Yield Bonds
PHBRX	HY Bear Fund	Total Return in Declining High Yield Bonds

The Dynamic HY Bond Fund seeks to maximize total return (income plus capital appreciation) by investing primarily in debt instruments, including convertible securities, and derivatives of such instruments, with an emphasis on lower-quality debt instruments.

The HY Bear Fund seeks to profit from a decline in the value of lower-quality debt instruments by creating short positions in such instruments and derivatives of such instruments.

Regulatory Documents (including Prospectus, SAI, Semi-Annual Report and Annual Report)

Announcements: Dividends for June 12, 2008

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

The risks associated with the Dynamic HY Bond Fund and HY Bear Fund are detailed in the prospectus which include risks of the Investment Adviser's Investment Strategy, Credit Risk and Lower-Quality Debt Instruments, Market Timing Activity and High Portfolio Turnover, Risks of Aggressive Investment Techniques, Risks of Investing in Derivatives, Swap Agreement Risks, Adverse Market Conditions, Interest Rate Changes, Prepayment Risk, Risk of Non-Diversification, Risk of Shorting Instruments.