Fund Highlights

Fund Information

Direxion/Wilshire Dynamic Fund

Benefits of the fund

In the view of Direxion Funds...
The Dynamic Fund is well suited for longer-term, buy-and-hold investing because
it does not rely solely on a traditional strategic asset allocation (SAA) approach. In
fact, Direxion feels that this fund may be used to compliment a SAA Strategy due to
its tactical components. The combined use of the SAA and the TAA, in tandem with
the Fund's ability to reallocate portfolio assets, as needed, helps to ensure that the
Fund is well positioned for both the short term as well as the long.

How investors can benefit from the Dynamic Fund

By investing in the Dynamic Fund, investors can enjoy numerous benefits. For example, the Fund may enable individuals to:

capture returns from directional trends;
take advantage of the features and benefits of both long and short investing;
benefit from the use of tactical tools, such as leverage and non-traditional asset classes, in an effort to
take advantage of short-term market events; and
leverage the wisdom and oversight of Wilshire Funds Management's Investment Committee.

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.