Alternative Strategy Mutual Fund Enhancements - Effective February 1st, 2012

Share Class Restructuring:

We are restructuring some of our share classes so we can provide more options for your advisors. After the restructuring goes into effect, there will be a Class A (with load waived option), Class C, and an Institutional Share Class. The current Investor Share Class for each of the funds will be redesignated as Class A share (load waived option). From a current shareholder’s viewpoint, this redesignation is not a taxable event, and existing shareholders will switch to Class A shares at NAV on February 1, 2012. For any new investors, the Class A Shares will have the same characteristics of the Investor Class shares, except the Class A shares will have a waivable front-end sales charge.

The table below shows the front-end sales charge by dollar value of an investor’s purchases for any commission-based advisor:

Purchases	Front-End Sales Charges
Less than $50,000	5.50%
$50,000-$99,999	4.75%
$100,000-$249,999	3.75%
$250,000-$499,999	2.75%
$500,000-$999,999	2.00%
$1 million and above	0.00%

Redemption Penalty Period:

To accommodate asset allocation models that might be more dynamic in nature, we changed the redemption penalty period from 90 to 30 days effective February 1, 2012. The redemption amount will remain at 1%.

Fee Reductions:

Our current suite of’ “buy and hold” mutual funds will have a reduction in their overall fees effective February 1, 2012. We are committed to providing investors access to different alternative strategies at a competitive fee structure. These changes illustrate our focus on trying to maximize the investor’s opportunity for success. Some of the changes are as follows:

The Shareholder Service fee has been eliminated altogether across the four funds.
For 12b-1 fees, to align with industry norms, the C Class shares will increase from 0.75% to 1.00%, while the other classes will remain unchanged.
There will be further reductions in overall fund operating expenses. This will bring our suite of alternative strategy mutual funds fees to a range of approximately 1.30%-1.40% for fee-based advisors.

The below shows an example of the Class A share (load waived option) expenses for each of the funds encompassing the impending fee reductions.

Direxion Wilshire Dynamic Fund: 1.35%
Direxion Long/Short IPO Global Fund: 1.40%
Commodity Trends Strategy Fund: 1.30%
Currency Trends Strategy Fund: 1.40%

As always, if you have any questions, please feel free to contact Direxion Funds at 877-437-9363 or info@direxionfunds.com

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.

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 risks associated with the funds are detailed in the prospectuses which include Adverse Market Conditions Risk, Adviser's Investment Strategy Risk, Aggressive Investment Techniques Risk, Commodities Risk, Concentration Risk, Counterparty Risk, Credit Risk, Currency Exchange Rate Risk, Debt Instrument Risk, Depositary Receipt Risk, Early Close/Trading Halt Risk, Emerging Markets Risk, Equity Securities Risk, Foreign Securities Risk, Gain Limitation Risk, Geographic Concentration Risk, Interest Rate Risk, Intra-Calendar Month Investment Risk, Inverse Correlation Risk, Leverage Risk, Lower-Quality Debt Securities, Market Risk, Market Timing Activity and High Portfolio Turnover, Monthly Correlation Risk, and Negative Implications of Monthly Goals in Volatile Market.

Distributed by: Rafferty Capital Markets LLC