Fund Highlights

Fund Information

Direxion/Wilshire Dynamic Fund

The Principal Investment Strategy

Wilshire Funds Management, the global investment management business unit of Wilshire Associates, Inc, bases its investment strategy on a traditional strategic asset allocation model, in conjunction with a tactical overlay, whereby approximately:

60% of the Fund's total assets are invested in US and foreign equity securities including the securities of small-, mid-, and large-capitalization companies; and
40% of Fund assets are invested in US and International fixed income securities.

The Fund's Equity Component	The Fund's Fixed Income Component
The Fund's equity investments may range from approximately 42-78% of the portfolio.	The Fund's fixed income investments may range from approximately 28-52% of the portfolio.
The equity components could include: common stocks preferred stocks convertible securities and warrants of US and foreign issuers open and closed investment companies exchange traded funds financial instruments that provide exposure to US and foreign equity indexes alternative asset classes that could include: commodities, real estate Investment trusts (REITs) and other alternatives	The fixed income components could include: high quality fixed income securities investment grade bonds debt securities of US government and corporate issuers financial instruments short term debt instruments with terms of maturity of less than 397 days that exhibit high quality credit including: US government securities, repurchase agreements, and money market funds high yield corporate debt securities

The Fund's Equity Component

The Fund's Fixed Income Component

The Fund's equity investments may range from approximately 42-78% of the portfolio.

The Fund's fixed income investments may range from approximately 28-52% of the portfolio.

The equity components could include:

common stocks
preferred stocks
convertible securities and warrants of US and foreign issuers
open and closed investment companies
exchange traded funds
financial instruments that provide exposure to US and foreign equity indexes
alternative asset classes that could include: commodities, real estate Investment trusts (REITs) and other alternatives

The fixed income components could include:

high quality fixed income securities
investment grade bonds
debt securities of US government and corporate issuers
financial instruments
short term debt instruments with terms of maturity of less than 397 days that exhibit high quality credit including: US government securities, repurchase agreements, and money market funds
high yield corporate debt securities

This investment approach is intended to provide investors with a long-term investment strategy that incorporates increased or decreased risk exposure, depending on Wilshire's expectations of short-term market risk or opportunity. Wilshire uses a tactical overlay to take advantage of short-term market inefficiencies based on its outlook for key asset classes and the market in general. Wilshire's tactical model evaluates asset class allocations on a monthly basis. As a result of this evaluation and current market conditions, the Dynamic Fund may be rebalanced.

Overview

The Principal
Investment Strategy

What is Tactical
Investing?

Benefits of
The Dynamic Fund

Implementation
of the Fund

Wilshire Funds Management uses mathematical and statistical investment processes to allocate assets, select managers and construct portfolios and funds in ways that seek to outperform their specific benchmarks. Past performance is no guarantee of future results. Each model and asset class entails risk. There is no guarantee that these investment strategies will work under all market conditions and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. No representation is being made that any account, product, or strategy will or is likely to achieve profits, losses, or results similar to those shown. Wilshire is a registered service mark of Wilshire Associates Incorporated of Santa Monica, California. The model portfolios described in this paper are hypothetical in nature. The actual characteristics and performance of a port- folio based on these models will vary. All data used for explanatory purposes in this paper is as of December 31, 2007, except for the Bear Market Strategy, which uses January 31, 2008 data for comparative purposes.

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 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 lever- age will magnify gains or losses on those investments.