Fund Facts (Class A)

Ticker Symbol: GUTEX Cusip Number: 700159601 Date of Inception: 2/16/93

Minimum Investment: $2,500; $1,000 for IRA Minimum Subsequent Investment: $100 Sales Load: See pages 113-120 of the Prospectus Redemption Fee: None

Management subadvised by Guardian Investor Services LLC

Alexander Grant   Portfolio manager of the RS Tax-Exempt Fund and RS Cash Management Fund   •   Managed the Fund since December 1993   •   Managing Director, Guardian Life   •   Manages Guardian Life’s tax-exempt assets   •   Education: B.A. from the State University of New York at Buffalo

Investment Objective
Seeks to maximize current income exempt from federal income taxes, consistent with the preservation of capital.

Investment Strategy
At least 80% of the value of the Fund's net assets will be invested in a diversified portfolio of investment grade municipal obligations. This is a fundamental policy that cannot be changed without shareholder approval. For the purpose of this policy, the Fund will invest in municipal obligations, the interest on which is, in the opinion of the issuer's bond counsel, exempt from federal income tax, including federal alternative minimum tax (AMT). Up to 20% of the Fund's net assets may be invested in bonds that pay interest subject to regular federal income tax, or private activity bond subject to AMT.

Investors in the Fund may be subject to Alternative Minimum Tax and certain other state and local taxes.

Risk Factors
As with all mutual funds, the value of an investment in the Fund could decline, so you could lose money. The RS Tax-Exempt Fund invests so that under normal circumstances at least 80% of its net assets is invested in bonds exempt from federal income tax including alternative minimum tax (AMT). A portion of the Fund’s assets may be invested in bonds that are taxable or subject to AMT. You may also be subject to capital gains tax, or state and/or local taxes.

Fund Metrics (Class A)

As of 5/1/08 Management Fees: 0.50% Distribution (12b-1) Fees: 0.25% Other Expenses: 0.22% Total Annual Fund Operating Expenses: 0.97%1 Fee Waiver/Expense Limitation: -0.12%1 Net Expenses: 0.85%1		As of 9/30/08 Fund Assets: $107.0 million Beta: 1.002 R2: 0.992
1 An expense limitation with respect to the Fund's Total Annual Fund Operating Expenses is imposed pursuant to a written agreement between RS Investments and the Fund in effect through December 31, 2009. The effect of this limitation is reflected under the caption "Fee Waiver/Expense Limitation." RS Investments may terminate the limitation for the Fund after December 31, 2009. "Net Expenses" reflect the effect of this expense limitation on "Total Annual Fund Operating Expenses." 2 Risk characteristics are relative to the Barclays Capital Municipal Bond Index as of 9/30/08, and for the three-year period.

Performance Update (Class A)
Average Annual Total Returns For Periods ended 9/30/08

Performance quoted represents past performance and does not guarantee future results. The Fund is the successor to The Guardian Tax-Exempt Fund; performance shown includes performance of the predecessor fund for periods prior to October 9, 2006. Investment return and principal value will fluctuate, so shares, when redeemed, may be worth more or less than their original cost. As of the most current prospectus, the Fund's total gross annual operating expense ratio for the Class A shares is 0.97%. Class A performance quoted "with maximum sales charge" reflects the current maximum sales charge of 3.75%. Please read the prospectus carefully for more information on sales charges as they do not apply in all cases and if applied are reduced for larger purchases. Any sales charges are in addition to the Fund's fees and expenses as detailed in the Fund's most current prospectus. Fees and expenses are factored into the net asset value of your shares and any performance numbers we release. Total return figures reflect an expense limitation in effect during the periods shown; without such limitation, the performance shown would have been lower. Performance results assume the reinvestment of dividends and capital gains. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares. Current and month-end performance information, which may be lower or higher than that cited, is available by contacting RS Investments at 800-766-3863 and is frequently updated on our Web site: www.RSinvestments.com.

* The Barclays Capital Municipal Bond Index is generally considered to be representative of U.S. municipal bond market activity. Unlike the Fund, the index does not incur fees or expenses.

Top Ten Holdings
as of 9/30/08

Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell individual securities.

Top Ten State Allocations
as of 9/30/08

State Allocations are subject to change.

Asset Allocation
as of 9/30/08

Asset Allocations are subject to change.

Sector Allocation
as of 9/30/08

Sector Allocations are subject to change.

Quarterly Fund Commentaries   (as of 9/30/08)

  Third Quarter 2008
  Second Quarter 2008
  First Quarter 2008
  Fourth Quarter 2007
  Third Quarter 2007
  Second Quarter 2007
  First Quarter 2007
  Fourth Quarter 2006