<PAGE>
RYDEX DYNAMIC FUNDS
SUPPLEMENT DATED OCTOBER 10, 2000
TO THE RYDEX DYNAMIC FUNDS C CLASS SHARES PROSPECTUS
AND STATEMENT OF ADDITIONAL INFORMATION
DATED OCTOBER 9, 2000
This supplement provides new and additional information beyond that contained in
the Prospectus and Statement of Additional Information (SAI) and should be read
in conjunction with the Prospectus and SAI.
--------------------------------------------------------------------------------
ON NOVEMBER 30, 2000 THE RYDEX DYNAMIC FUNDS AND THE ADVISOR WILL BE MOVING TO A
NEW LOCATION. THE NEW LOCATION'S INFORMATION IS CURRENTLY INCLUDED IN THE
PROSPECTUS AND SAI. UNTIL THAT DATE ALL REFERENCES TO THE ADDRESS AND PHONE AND
FAX NUMBERS OF THE RYDEX DYNAMIC FUNDS, ITS OFFICERS AND TRUSTEES, AND THE
ADVISOR SHOULD BE REPLACED WITH THE FOLLOWING INFORMATION:
ADDRESS - 6116 Executive Boulevard
Suite 400
Rockville, MD 20852
PHONE - (301) 468-8520
1-800-820-0888
FAX - (301) 468-8585
--------------------------------------------------------------------------------
PLEASE RETAIN THIS SUPPLEMENT
UNTIL NOVEMBER 30, 2000
