The above Examples reflect applicable contractual fee waiver/expense reimbursement
arrangements for the duration of the arrangements only.

The Fund pays transaction costs, such as commissions, when
it buys and sells securities (or "turns over" its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund's
performance. During the most recent fiscal year, the Fund's portfolio turnover
rate was 29% of the average value of its portfolio.

The Fund pursues its objective by investing,
under normal market conditions, at least 80% of its net assets (plus any
borrowings for investment purposes) in equity securities, which include common
stocks, rights, options, warrants, convertible debt securities of both U.S. and
U.S. dollar-denomi­nated foreign issuers, and American Depositary Receipts
("ADRs"), of companies that, when purchased, have market capitalizations that
are usually within the range of companies in the Russell 1000 Value Index.
Although a universal definition of large market capitalization companies does
not exist, for purposes of this fund, the Fund generally defines large market
capitalization companies as those whose market capitalization is similar to the
market capitalization of companies in the Russell 1000 Value Index, which is an
unmanaged index measuring the performance of the large cap value segment of the
U.S. equity universe and which includes companies with lower price-to-book
ratios and lower expected growth values.

In choosing securities, Security Investors, LLC (the "Investment Manager")
primarily invests in value-oriented companies. Value-oriented companies are
companies that appear to be undervalued relative to assets, earnings, growth
potential or cash flows. The Investment Manager uses a blend of quantitative
analysis and fundamental research to identify securities that appear favorably
priced and that may be able to sustain or improve their pre-tax ROIC (Return on
Invested Capital) over time. The Fund may, consistent with its status as a
non-diversified mutual fund, focus its investments in a limited number of
issuers.

The Fund may invest a portion of its assets in futures contracts, options on
futures contracts, and options on securities. These instruments are used to
hedge the Fund's portfolio, to maintain exposure to the equity markets, or to
increase returns.

The Fund may invest in a variety of investment vehicles, including those that
seek to track the composition and performance of a specific index, such as
exchange traded funds ("ETFs") and other mutual funds. The Fund may use these
investments as a way of managing its cash position, or to gain exposure to the
equity markets or a particular sector of the equity markets, while maintaining
liquidity.

The Fund typically sells a security when its issuer is no longer considered a
value company, shows deterior­ating fundamentals or falls short of the
Investment Manager's expectations, among other reasons.

Under adverse or unstable market conditions, the Fund could invest some or all
of its assets in cash, fixed-income securities, government bonds, money market
securities, or repurchase agreements. Although the Fund would do this only in
seeking to avoid losses, the Fund may be unable to pursue its investment
objective during that time, and it could reduce the benefit from any upswing in
the market.

An investment in the Fund is not a deposit of a bank and is
not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. The value of an investment in the Fund will fluctuate
and is subject to investment risks, which means investors could lose money. The
principal risks of investing in the Fund are listed below.

Equity Derivatives Risk. Equity derivatives may pose risks in addition to those
associated with investing directly in securities or other investments, including
illiquidity of the equity derivative, imperfect correlations with underlying
investments or the Fund's other portfolio holdings, lack of availability and
counterparty risk.

Equity Securities Risk. Equity securities include common stocks and other equity
securities (and securities convertible into stocks), and the prices of equity
securities fluctuate in value more than other investments. They reflect changes
in the issuing company's financial condition and changes in the overall market.
Common stocks generally represent the riskiest investment in a company. The Fund
may lose a substantial part, or even all, of its investment in a company's stock.
Growth stocks may be more volatile than value stocks.

Foreign Securities Risk. Foreign securities, including investments in foreign
securities through ADRs, carry additional risks when compared to U.S.
securities, including currency fluctuations, adverse political and economic
developments, unreliable or untimely information, less liquidity, limited legal
recourse and higher transactional costs.

Index Risk. Investments intended to track a benchmark index may not have
performance that corresponds with the performance of the benchmark index for any
period of time and may underperform the overall stock market.

Investment in Investment Vehicles Risk. Investing in other investment vehicles,
including ETFs and other mutual funds, subjects the Fund to those risks
affecting the investment vehicle, including the possibility that the value of
the underlying securities held by the investment vehicle could decrease.
Moreover, the Fund and its share­holders will incur its pro rata share of the
underlying vehicles' expenses.

Leverage Risk. The Fund's use of leverage through derivatives may cause the Fund
to be more volatile than if it had not been leveraged. Leverage can arise
through the use of derivatives.

Management Risk. The Fund is actively managed. There is no guarantee that the
investment strategies will be successful.

Market Risk. The market value of the securities held by the Fund may fluctuate
resulting from factors affecting the individual company or other factors such as
changing economic, political or financial market conditions.

Non-Diversification Risk. The Fund is considered non-diversified because it
invests a large portion of its assets in a small number of issuers. As a result,
the Fund is more susceptible to risks associated with those issuers than a more
diversified portfolio, and its performance may be more volatile.

Overweighting Risk. Overweighting investments in certain sectors or industries
of the stock market increases the risk that the Fund will suffer a loss because
of general declines in the prices of stocks in those sectors or industries.

Preferred Securities Risk. Preferred securities are subject to issuer-specific
and market risks applicable to equity securities and generally fluctuate in
value more than bonds.

Value Stocks Risk. 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.

The following chart and table provide some indication
of the risks of investing in the Fund by showing changes in the Fund's Class A
share performance from year to year and by showing how the Fund's average annual
returns for one, five, and ten years have compared to those of a broad measure
of market performance. As with all mutual funds, past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. Updated performance information is available on the Fund's website
at www.rydex-sgi.com or by calling 1-800-820-0888.

The bar chart does not reflect the impact of the sales charge applicable to
Class A shares which, if reflected, would lower the returns shown.

The Dreyfus Companies served as the sub-adviser to the Fund between January 1,
2001 and July 1, 2005. Since then, advisory services have been provided by the
Investment Manager.

Highest Quarter Return
   2Q 2009   19.19%

Lowest Quarter Return
   4Q 2008   -23.63%