Monthly Leveraged Mutual Funds

Understanding the Composition, Benefits & Risks.

The Direxion 2x monthly leveraged index-based mutual funds provide 200% (or 200% of the inverse) exposure to their benchmarks and the ability for investors to navigate changing markets with flexibility. Although Direxion leveraged mutual funds are somewhat similar to non-leveraged mutual funds, there are key differences that are important for investors to understand. The following brochure is designed to provide you with details concerning the composition of these funds, their monthly rebalancing feature, and the potential risks associated with them.

A Quick Look at How the Funds Work

Each Direxion monthly leveraged mutual fund seeks to provide calendar month-leveraged investment results, before fees and expenses, that correspond to the performance of its benchmark.

Bull funds attempt to provide investment results that correlate positively to the return of their benchmark. Conversely, bear funds attempt to provide performance results that correlate negatively to the return of their benchmark. As with any investment, this performance is not guaranteed.

Applying leverage to an index has the potential for greater gains or greater losses relative to the performance of the benchmark index.

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