SOURCE: Direxion


September 30, 2009 09:00 ET

Direxion Changes Investment Objective of Leveraged Index Mutual Funds

Funds to Begin Seeking Monthly Investment Results, Offering Tactical Approach for Investors With Slightly Longer Time Frames

NEWTON, MA--(Marketwire - September 30, 2009) - Direxion, a pioneer in providing alternative investment strategies to sophisticated investors, announced that it is changing the investment objective for all of its Leveraged Index Mutual Funds. Effective September 30, 2009, the funds will begin seeking monthly investment results, rather than daily results.

Also effective with this change, funds that sought to achieve 250% or -250% of the performance of their index on a daily basis will now seek to achieve 200% or -200% of the performance of their index on a monthly basis.

"Direxion's leveraged products are powerful investment tools for sophisticated investors who seek magnified exposure to the markets," said Dan O'Neill, Direxion's President. "While our Leveraged Daily ETFs are designed primarily for traders seeking more immediate results based on short-term market movements, our Leveraged Monthly Mutual Funds are well-suited for investors implementing sophisticated investment strategies with slightly longer time frames."

Direxion highly recommends that investors actively monitor and manage their investments in any leveraged fund. The Monthly Mutual Funds are intended for investors seeking to use leverage to execute short- to medium-term tactical investment maneuvers.

The effects of compounding may still be substantial for the Monthly Mutual Funds over multiple-month periods. However, monthly rebalancing funds can allow for greater manageability of market exposure levels throughout each month. The exposure levels that investors obtain when they purchase a fund remain constant until the fund rebalances on the last trading day of the month, or until the investor sells, whichever occurs earlier.

If investors make intra-month purchases -- that is, on any day other than the last trading day of the month -- the total exposure of the fund may be higher or lower than the stated (2x or -2x) monthly objective. Direxion has developed a comprehensive suite of educational literature and tools to help investors better understand the funds' new objectives and how their investments should be expected to behave in the markets.

To request more information on Direxion Monthly Leveraged Index Mutual Funds, or to speak to a member of the Direxion team, please contact Katrine Winther-Olesen at (973) 400-1341 or

About Direxion

Direxion Funds and Direxion Shares, managed by Rafferty Asset Management, LLC, offer leveraged index funds, ETFs and alternative-class fund products for investment advisors and sophisticated investors who seek to effectively manage risk and return in both bull and bear markets. Founded in 1997, the company has approximately $6.5 billion in assets under management as of 6/30/09. The company's business model is built on continuous product innovation, exceptional customer service and a commitment to building strategic relationships with distribution partners. For more information, please visit

An investor should consider the investment objectives, risks, charges, and expenses of Direxion Funds carefully before investing. The prospectus contains this and other information about Direxion Funds. To obtain a prospectus, please visit The prospectus should be read carefully before investing.

Investing in index funds may be more volatile than investing in broadly diversified funds. The use of leverage by a mutual fund increases the risk to the fund. The more a fund invests in leveraged instruments, the more the leverage will magnify gains or losses on those investments.

The risks associated with the funds are detailed in the prospectuses, which include Adverse Market Conditions Risk, Adviser's Investment Strategy Risk, Aggressive Investment Techniques Risk, Commodities Risk, Concentration Risk, Counterparty Risk, Credit Risk, Currency Exchange Rate Risk, Debt Instrument Risk, Depositary Receipt Risk, Early Close/Trading Halt Risk, Emerging Markets Risk, Equity Securities Risk, Foreign Securities Risk, Gain Limitation Risk, Geographic Concentration Risk, Interest Rate Risk, Intra-Calendar Month Investment Risk, Inverse Correlation Risk, Leverage Risk, Lower-Quality Debt Securities, Market Risk, Market Timing Activity and High Portfolio Turnover, Monthly Correlation Risk, and Negative Implications of Monthly Goals in Volatile Market.

Date of First Use: September 30, 2009. Distributed by: Rafferty Capital Markets LLC.

Contact Information

  • Contact:
    Katrine Winther-Olesen
    JCPR, Inc.
    Email Contact