How to Instantiate objects on Ray.Hit

Hey, I am working on a raycast system and whenever the particle instantiates, it seems to instantiate on the player. Anyone know why this is?

 function RayShoot ()
 {
 //Tells us if a the Ray has hit something
 var Hit : RaycastHit;
 //Direction of the Ray that the player has sent out
 var DirectionRay = transform.TransformDirection (Vector3.forward);
 
 //Make sure the player cannot shoot while reloading
 //Note: This only matters for ReloadTrigger as when
 //AutoReloading, "BulletsLeft" already is equal to 0
 if (IsReloading == false)
 {
     //Makes the Ray visible in Game inspector (for debugging perpouses)
     Debug.DrawRay(transform.position , DirectionRay * Range , Color.red);
     //If the Ray is sent out...
     if(Physics.Raycast(transform.position , DirectionRay , Hit, Range))
     {
         //...and we have hit a "RigidBody" Physics Object
         if(Hit.rigidbody)
         {
         //Make the object fly away by adding force to it
         Hit.rigidbody.AddForceAtPosition(DirectionRay * Force , Hit.point);
         //This finds the "ApplyDamage" function and does damage to the player/AI...Don't ask me
         //How this works :P
         Hit.collider.SendMessageUpwards("ApplyDamage", Damage, SendMessageOptions.DontRequireReceiver);
         //Tell the console we have hit and applied force to the object
         Debug.Log("Rigid Body has been Hit")
         }
         //If a RigidBody is not hit but an object with the Tag mudFloor...
         else if(Hit.transform.tag == "mudFloor")
         {
         //...create the Particle effect
         Instantiate(Particle1, transform.position, transform.rotation);
         //Tell the console that the particle is instantiated
         Debug.Log("Mud Particle Instantiated")
         }
         
     }
     //Take away from our BulletsLeft for eveytime we have fired
     BulletsLeft --;
     
     if(BulletsLeft < 0){
     //Make sure BulletsLeft cant go bellow "0"
     BulletsLeft = 0;
     }
     if(BulletsLeft == 0){
     //Automatic Reload if the Player is out of Ammo
     Reload();
     }
 }    
 }

Posting the whole function might not have been necessary, but I thought it would help to prevent confusion ^^ Thank you in advance!