Our Funds

Parnassus Small Cap Fund

a As described in Fund's current prospectus dated May 1, 2013, Parnassus Investments has contractually agreed to reduce its investment advisory fee to the extent necessary to limit total operating expenses to 1.20% of net assets for the Parnassus Small Cap Fund. This agreement will not be terminated prior to May 1, 2014, and may be continued indefinitely by the investment adviser on a year-to-year basis.

Annual Returns as of

Growth of $10,000 as of 2

1 All returns greater than one year are annualized.

2 Since inception on April 29, 2005

3 The chart shows the growth in value of a hypothetical $10,000 investment over the last 10 years and does not reflect the deduction of taxes a shareholder would pay on fund distributions or the redemption of fund shares.

Performance data quoted represent past performance and are no guarantee of future returns. All performance assumes reinvestment of dividends and capital gains. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

The Russell 2000 Index is a widely recognized index of common stock prices. An individual cannot invest directly in an index. An index reflects no deductions for fees, expenses or taxes, but mutual fund returns do.

Common stock prices fluctuate based on changes to a companys financial condition and on overall market and economic conditions.

The fund invests primarily in small-cap companies, which can be particularly sensitive to changing economic conditions and have fewer financial resources that large-cap companies. Relative to stocks of large-cap companies, the stocks of small -cap companies are often thinly traded, and purchases and sales may result in higher transaction costs. Also, small-cap companies tend to perform poorly during times of economic stress. Investment return and principal will fluctuate, so that an investors shares, when redeemed, may be worth more or less than their original principal cost.

Returns shown for the Fund do not reflect the declaration of taxes a shareholder would pay on the fund distributions or redemption of fund shares.