<PAGE>
RYDEX DYNAMIC FUNDS
SUPPLEMENT DATED MAY 19, 2000
TO THE PROSPECTUS DATED MARCH 1, 2000
This supplement provides new and additional information beyond that contained in
the Prospectus and should be read in conjunction with the Prospectus.
- --------------------------------------------------------------------------------
INTRA-DAY TRADING IS NOT YET AVAILABLE.
The Dynamic Funds and the Money Market Fund currently calculate NAV ONCE each
Business Day at the close of the New York Stock Exchange (currently 4:00 p.m.,
Eastern Time).
It is anticipated the intra-day trading will be offered later this year. For
further information about intra-day trading becoming available, please refer to
the Rydex web site - www.rydexfunds.com.
- --------------------------------------------------------------------------------
PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE
