Fund Information

The Direxion Long/Short Global IPO Fund

Principal Investment Strategy

The Fund will also participate in initial public offerings to take advantage of any potential under-pricing detected in the global IPO market.
The Fund is a mainly market-neutral investment with a slight bias toward the long/positive (maximum 40% of portfolio) when it participates in initial offerings.
The Fund uses the exclusive methodology developed by IPOX Capital Management to establish a long/short portfolio made up of IPOs and new equity issues. The long portion of the portfolio features those stocks within their first year of public offering that the portfolio manager expects to deliver short-term over-performance. The short portion of the portfolio features stocks that are anywhere between their second and fourth year of public offering – and are expected to under-perform.
The portfolio manager seeks to leverage the information asymmetry in each IPO's early stages (e.g., the fact that only limited data such as analyst expectations is available before issue and prior to the release of first-year performance figures) against the actual performance (which may substantially differ from initial projections) that will emerge in the later stages of the life cycle.

Investment Objective
Principal Investment
Strategy

The Direxion Long/
Short Global IPO Fund

Why IPOs?

Why a Long/Short IPO
Strategy?

Three Stages of the
IPO Lifecycle

Why Invest in the
Fund?

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.

You will be assessed a 1.0% redemption fee on investor class shares redeemed (through sales or exchanges) within 90 days of the date of purchase. The performance listed on the previous page does not reflect the 1.0% redemption fee. A contingent deferred sales charge ("CDSC") of 1.00% will be imposed on Class C Shares redeemed with one year of purchase. The CDSC is a percentage of the lower of the original purchase price or redemption proceeds.

The principal risks of investing in the Direxion Long Short Global IPO Fund are Adverse Market Conditions Risk, Counterparty Risk, Currency Exchange Rate Risk, Derivatives Risk, Emerging Markets Risk, Equity Securities Risk, Foreign Instrument Risk, High Porfolio Turnover, IPO Risk, Leverage Risk, Market Risk, Non-Diversification Risk, Options and Futures Contracts Risk, Security Selection Risk, Shorting Instruments Risk, Tracking Error Risk, Valuation Time Risk, and Volatile Markets Risk.

Any investments made in whole or in part by a party in reliance thereon are made at such party's sole risk. No guarantee of any kind is implied or possible where opinions as to past or future market conditions/events is provided. Past performance is not necessarily indicative of future results.

Distributor: Rafferty Capital Markets, LLC.

Date of First Use: March 1, 2010