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Parnassus Mid Cap Fund

Institutional Shares

Objective:

Capital appreciation.

Strategy

The Parnassus Mid Cap Fund invests with low turnover and high conviction in approximately 40 holdings. The Fund seeks to invest in companies with:

  • Wide moats or strong competitive advantages that protect market share and profitability
  • Relevancy over the long term, which provides a compounding growth component
  • Quality management teams that will act in the best interest of shareholders
  • Favorable three-year investment horizon

The Fund strives to outperform the Russell Mid Cap Index over the long-run on a risk-adjusted basis with a high active share. The Fund attempts to shield investors from losses during bear markets.

Risks

The Fund’s share price may change daily based on the value of its security holdings. Stock markets can be volatile, and stock values fluctuate in response to the asset levels of individual companies and in response to general U.S. and international market and economic conditions. Security holdings in the fund can vary significantly from broad market indexes.

The Fund invests in the stocks of small and mid-cap companies, which are generally riskier than larger companies, and the Fund’s share price may be more volatile than funds that invest in larger companies.

Fund Facts

Ticker PFPMX
CUSIP 701765505
Minimum Investment $100,000
Gross Expense Ratio 0.75 %
Net Expense Ratio* 0.75 %
Inception Date 4/30/2015
Fund Managers,
Since October 2008
Since October 2008

Matthew D. Gershuny
Lori A. Keith
Fund Strategy Mid-Cap Core
Lipper Category Mid-Cap Core
Distribution Frequency Annually
Share Class Assets $996MM
Total Net Assets1 $2,971MM

Change Share Class: View Investor Shares

Institutional Shares
Institutional Shares are generally for institutional investors and have a minimum investment of $100,000. Institutional Shares are available to investors who invest directly in the Fund as well as those who invest through certain intermediaries. The minimum initial investment may be waived for group retirement plans. Please see the prospectus for more details.

Investor Shares
Investor Shares are generally for individual investors have a minimum investment of $2,000, which may be reduced to $500 for IRAs and certain custodial accounts. Please see the prospectus for more details.

Info

* Expenses based on total net assets, net of reimbursement.

As described in the Fund's current prospectus dated May 1, 2018, Parnassus Investments has contractually agreed to reduce its investment advisory fee to the extent necessary to limit total operating expenses to 0.85% of net assets for the Parnassus Mid Cap Fund—Institutional Shares. This agreement will not be terminated prior to May 1, 2019, and may be continued indefinitely by the investment adviser on a year-to-year basis. The net expense ratio is what investors pay.

1Total net assets represent the combined assets of Institutional Shares and Investor Shares.

Fund characteristics and statistics are based on historical five year information and are available here for the Investor share class.

The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% threeyear rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Parnassus Mid Cap Fund was rated against the following numbers of Mid Cap Blend Funds over the following time periods: 369 funds in the last three years, 329 funds in the last five years, and 232 funds in the last ten years. Past performance is no guarantee of future results. Morningstar Rating is for the Institutional class only; other classes may have different performance characteristics.