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RYDEX DYNAMIC FUNDS
SUPPLEMENT DATED AUGUST 29, 2000
TO THE RYDEX DYNAMIC FUNDS STATEMENT OF ADDITIONAL INFORMATION
DATED MARCH 1, 2000
This supplement provides new and additional information beyond that contained
in the Statement of Additional Information (the "SAI") and should be read in
conjunction with the SAI.
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THE FOLLOWING PARAGRAPH WILL REPLACE THE FOURTH PARAGRAPH ON PAGE 14 OF THE
RYDEX DYNAMIC FUNDS SAI:
In managing the investment portfolios of the Funds, the Advisor effects
transactions with those brokers and dealers who the Advisor believes provide
the most favorable prices and are capable of providing efficient executions.
If the Advisor believes such prices and executions are obtainable from more
than one broker or dealer, the Advisor may give consideration to placing
portfolio transactions with those brokers and dealers who also furnish
research and other services to a Fund or the Advisor. In addition, Section
28(e) of the Securities Exchange Act of 1934 permits the Advisor to cause a
Fund to pay commission rates in excess of those another dealer or broker
would have charged for effecting the same transaction, if the Advisor
determines, in good faith, that the commission paid is reasonable in relation
to the value of brokerage and research services provided.
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PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE
