Fund Highlights

Fund Information

Direxion/Wilshire Dynamic Fund

The Importance of Tactical Investing

The purpose of a tactical overlay

The ultimate goal of a tactical overlay is to smooth
out the short-term volatility that a typical investor
may experience if not properly positioned to handle
short-term market inefficiencies.

How Tactical Overlays Work

The Dynamic Fund is based on a strategic asset allocation model that allocates approximately 60% of total assets to equity securities, and approximately 40% of assets to fixed income securities. This model, which is listed in the "Traditional Allocation" column in the table to the right, defines the broad long-term guidelines for the Dynamic Fund's portfolio. Wilshire's tactical asset allocation, listed in the "Tactical Allocation" column in the table below, defines the short-term, generally minor, variations that Wilshire will employ to enhance returns or manage risk by taking advantage of market pricing anomalies or strong market sectors. The "Over-/Underweighting" column illustrates how the tactical overlay manifests itself across the various asset classes.

Asset Class	Traditional Allocation	Tactical Allocation	Over-/Under- Weightings
Cash	0%	11%	+11%
TIPS	5%	5.5%	+0.5%
U.S. Treasuries	0%	-1%	-1%
U.S. Bonds	30%	33%	+3%
High Yield Bonds	3%	6%	+3%
Non U.S. Bonds	2%	4%	+2%
U.S. Large Cap Growth Equity	16.5%	9.75%	-6.75%
US Large Cap Value Equity	16.5%	8.75%	-7.75%
US Small Cap Growth Equity	2.5%	1.75%	-0.75%
US Small Cap Value Equity	2%	1.25%	-0.75%
Real Estate Investment Trusts	1%	2%	+1%
Europe ex-UK Equity	7%	5.8%	-1.2%
UK Equity	2%	1.8%	-0.2%
Pacific ex-Japan Equity	5%	2.7%	-2.3%
Japanese Equity	4%	3.2%	-0.8%
Emerging Markets	2%	2%	-
Commodities	1.5%	1.5%	-

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.