High Yield Investing

High Yield Bonds have the ability to provide investors and advisors with numerous benefits to potentially enhance portfolio performance and risk management. Their inherent potential to provide equity like returns with notably less volatility makes them an attractive option for many asset allocation strategies.

Some benefits of High Yield bonds include:

> High current income
> Low correlation to other markets
> Low sensitivity to interest rates

It is a common belief that these investments have a high rate of default frequency when in fact the 25 year average default rate* is 4.2% as of 12/31/08.

Direxion has made it easier for investors and advisors to gain liquid long and/or short exposure to the high yield market through the:

> Dynamic HY Bond Fund (PDHYX)
> HY Bear Fund (PHBRX)

To learn more about how you can put active high yield investing to work for you or your clients, or how Direxion Funds may be able to complement your investment strategies, please call Direxion Funds at 877.437.9363.

*Sources: JPMorgan; Moody's Investors Service

The risks associated with the Dynamic HY Bond Fund and HY Bear Fund are detailed in the prospectus. These include risks of the investment adviser's investment strategy, credit risk and lower-quality debt instruments, market timing activity and high portfolio turnover, risks of aggressive investment techniques, risks of investing in derivatives, swap agreement risks, adverse market conditions, interest rate changes, prepayment risk, risk of non-diversification, and risk of shorting instruments.

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.

Date of First Use: May 19, 2009. Distributed by: Rafferty Capital Markets, LLC.