S&P 500® Bear 1x Fund

PSPSX

* This fund has been closed effective March 20, 2008. Click here for details.

Symbol

Fund

Index/Benchmark

Daily Target

The S&P 500® Bear 1x Fund seeks to provide investment returns that inversely correspond (opposite) to 100% of the performance of the S&P 500® Index.

The S&P 500® Index is a capitalization-weighted index composed of 500 common stocks. Standard & Poor's® selects the 500 stocks comprising the S&P 500® Index on the basis of market values and industry diversification. The S&P 500® Funds are not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Direxion Funds.

Utilities	40.8%	Financial	11.6%	Consumer, Cyclical	2.7%
Technology	21.0%	Consumer, Non-cyclical	6.0%	Communications	1.1%
Industrial	13.3%	Energy	3.2%	Basic Materials	0.3%

Data as of 12/31/2007 is subject to change at any time and are not recommendations to buy or sell any security.

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

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.

Investing in index funds may be more volatile than investing in broadly diversified funds. The use of leverage by a mutual fund increases the risk to the fund. The more a fund invests in leveraged instruments the more the leverage will magnify gains or losses on those investments.

The principal risks of investing in the S&P 500® Bear 1x Fund are Market Timing Activity and High Portfolio Turnover, Risk of Tracking Error, Risks of Aggressive Investment Techniques, Leverage Risk, Risks of Investing in Equity Securities, Risks of Investing in Derivatives, Swap Agreement Risks, Risk of Non-Diversification, Risks of Shorting Securities and Inverse Correlation Risk. For more information on the risks of the fund, including a description of each risk, please refer to the prospectus.