Our Funds

Overall Morningstar Rating

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Parnassus Fund

Investor Shares

Objective:

Capital appreciation.

Strategy

The Parnassus Fund invests across the capitalization spectrum with high conviction in approximately 40 holdings. The Fund focuses on identifying 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
  • Stocks trading at a significant discount to their intrinsic value

The Fund's contrarian approach seeks to invest in companies that are currently out of favor with the majority of investors. The Fund strives to outperform the S&P 500 index with a high active share. The Fund avoids companies engaged in the extraction, exploration, production, manufacturing, or refining of fossil fuels.

Risks

The Funds 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. In addition to large-cap companies, the Fund may invest in small- and/or mid-cap companies, which can be more volatile than large-cap firms. Security holdings in the fund can vary significantly from broad market indexes.

Fund Facts

Ticker PARNX
CUSIP 701765109
Minimum Investment $2,000
Gross Expense Ratio 0.86 %
Net Expense Ratio* 0.86 %
Inception Date 12/31/1984
Fund Managers,
Since December 1984
Since May 2013
Since May 2016

Jerome L. Dodson
Ian Sexsmith
Robert J. Klaber
Fund Strategy Multi-Cap Core
Lipper Category Multi-Cap Core
Distribution Frequency Annually
Share Class Assets $911MM
Total Net Assets1 $1,037MM

Change Share Class: View Institutional 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
Fund Characteristics as of 6/30/17 Fund S&P 500 Index
Avg. Weighted Mkt. Cap ($Bin)

Avg. Weighted Mkt. Cap ($Bin)
The average capitalization of all stocks in the portfolio, weighted by each holding's size in the portfolio. Capitalization, or market value of an entire company, is calculated by multiplying the number of shares outstanding by the price per share.

Info
$67.9 $168.8
P/E Ratio

P/E Ratio
A ratio of a stock's current price to its per-share earnings over the past 12 months (or "trailing" 12 months). This gives us an idea of how "expensive" a stock may be. For a fund, the price/earnings ratio is the weighted average P/E ratio of the stocks it holds.

Info
17.2x 21.5x
P/B Ratio

P/B Ratio
The ratio of a stock’s latest closing price divided by its book value per share.

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2.7x 3.0x
Number of Holdings 40 505
Portfolio Turnover (2016 Annual) 41.7 % NA
Fund Statistics (5 Year) as of 6/30/17 Fund S&P 500 Index
Alpha

Alpha
A coefficient measuring risk-adjusted performance, considering the risk due to the specific security, rather than the overall market. A large alpha indicates that the stock or mutual fund has performed better than would be predicted, given its beta.

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0.69 % 0.00 %
Beta

Beta
A measurement of a fund's trailing 36-month returns in relation with the market as a whole. A beta of 1 means that the share price moves exactly inline with the market. A beta over 1 suggests that the share price will typically be more volatile than the market, and conversely, a beta below 1 indicates that the share price will typically be less volatile than the market.

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1.10 1.00
R-Squared

R-Squared
A measurement of how closely the portfolio's performance correlates with the performance of a benchmark index such as the S&P 500.

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0.75 1.00
Sharpe Ratio

Sharpe Ratio
A ratio used to measure risk-adjusted performance. It is calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns.

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1.37 1.53
Standard Deviation

Standard Deviation
A calculation used to measure variability (risk) of a portfolio's performance.

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12.14 % 9.56 %
Downside Risk

Downside Risk
A statistical measurement of a portfolio’s dispersion below the mean return of a benchmark.

Info
6.81 % 4.85 %
Tracking Error

Tracking Error
The standard deviation of the difference between the portfolio return and the desired investment benchmark return.

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6.19 % NA

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

The net expense ratio is what investors pay.

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

The Standard & Poor's 500 Composite Stock Price Index (also known as “the S&P 500 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.

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% three-year 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 Fund was rated against the following numbers of Large Growth Funds over the following time periods: 1,277 funds in the last three years, 1,152 funds in the last five years, and 803 funds in the last ten years. Past performance is no guarantee of future results. Morningstar Rating is for the Investor class only; other classes may have different performance characteristics.