# EDGAR Filing Document

**Accession Number:** 0000747546
**File Stem:** 0000897069-22-000690
**Filing Date:** 2023-1
**Character Count:** 22730
**Document Hash:** 913535b9e5b224287aed377365112a70
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000897069-22-000690.hdr.sgml**: 20230103

**ACCESSION NUMBER**: 0000897069-22-000690

**CONFORMED SUBMISSION TYPE**: 497K

**PUBLIC DOCUMENT COUNT**: 8

**FILED AS OF DATE**: 20230103

**DATE AS OF CHANGE**: 20221230

**EFFECTIVENESS DATE**: 20230103

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PARNASSUS FUNDS
- **CENTRAL INDEX KEY:** 0000747546
- **IRS NUMBER:** 946579180
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 497K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 002-93131
- **FILM NUMBER:** 221502692

**BUSINESS ADDRESS:**
- **STREET 1:** ONE MARKET #1600
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94105
- **BUSINESS PHONE:** 4157780200

**MAIL ADDRESS:**
- **STREET 1:** ONE MARKET #1600
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94105

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PARNASSUS FUND
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RENAISSANCE FUND/MA
- **DATE OF NAME CHANGE:** 19841206

## Series and Classes Contracts Data

### Parnassus Value Equity Fund (Series ID: S000000855)

| Class ID   | Class Name           | Ticker Symbol   |
|:---|:---|:---|
| C000002470 | Investor Shares      | PARWX           |
| C000156024 | Institutional Shares | PFPWX           |

Filed Pursuant to Rule 497(k)<br>1933 Act File No. 002-93131<br>1940 Act No. 811-04044

![LOGO](g438872g59o64.jpg)

## Summary Prospectus
**May 1, 2022** 

(As Amended and Restated January 1, 2023)

**Parnassus Value Equity Fund<sup>SM</sup>** 

Investor Shares: PARWX \| Institutional Shares: PFPWX

![LOGO](g438872g70k48.jpg)

Before you invest, you may want to review the Fund's prospectus, which contains more information about the Fund and its risks. You can find the Fund's prospectus, reports to shareholders, and other information about the Fund, including the statement of additional information and the most recent annual and semi-annual reports to shareholders, online at https://www.parnassus.com/literature-and-forms/fund-information. You can also get this information at no cost by calling (800) 999-3505 or by sending an email request to shareholder@parnassus.com. The Fund's prospectus and statement of additional information, both dated May 1, 2022, as may be supplemented from time to time, are incorporated by reference into this summary prospectus.

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|:---|:---|
| Summary Prospectus • 2022 | ![LOGO](g438872g68i37.jpg) |

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**Parnassus Value Equity Fund** (formerly Parnassus Endeavor Fund)

**Investment Objective** 

The Parnassus Value Equity Fund has the overall investment objective of capital appreciation.

**Fees and Expenses** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Parnassus Value Equity Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and example below.

**Parnassus Value Equity Fund** 

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| | | |
|:---|:---|:---|
| **Annual Fund Operating Expenses (%)** | **Annual Fund Operating Expenses (%)** | **Annual Fund Operating Expenses (%)** |
| **(expenses that you pay each year as a percentage<br>of the value of your investment)** | **(expenses that you pay each year as a percentage<br>of the value of your investment)** | **(expenses that you pay each year as a percentage<br>of the value of your investment)** |
| | **Investor<br>Shares** | **Institutional<br>Shares** |
| **Management Fees** | 0.66 | 0.66 |
| **Distribution (12b-1) Fees** |  |  |
| **Other Expenses** | 0.24 | 0.05 |
| &nbsp;&nbsp;&nbsp;&nbsp; Service Fees | 0.19 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; All Remaining Other Expenses | 0.05 | 0.05 |
| **Total Annual Fund Operating Expenses** | 0.90 | 0.71 |
| **Expense Reimbursement** | 0.02 | 0.06 |
| **Total Annual Fund Operating Expenses After Expense Reimbursement<sup>1</sup>** | 0.88 | 0.65 |

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<sup>1</sup> The investment adviser has contractually agreed to reduce its investment advisory fee to the extent necessary to limit total annual fund operating expenses to 0.88% of net assets for the Parnassus Value Equity Fund—Investor Shares and to 0.65% of net assets for the Parnassus Value Equity Fund—Institutional Shares. This agreement will not be terminated prior to May 1, 2023 and may be continued indefinitely by the investment adviser on a year-to-year basis.

For additional information about the Parnassus Value Equity Fund's expenses, please see "Financial Highlights" in the prospectus.

***Example***

This example is intended to help you compare the cost of investing in the Parnassus Value Equity Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, and that the Fund's expenses are equal to the

total annual fund operating expenses after expense reimbursement for the first year and the total annual fund operating expenses for the remaining years. Although your actual costs may be higher or lower, under these assumptions, your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor Shares** | $90 | $294 | $514 | $1149 |
| **Institutional Shares** | $66 | $225 | $398 | $899 |

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**Portfolio Turnover** 

The Parnassus Value Equity Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 37.2% of the average value of its portfolio.

**Principal Investment Strategies** 

The Parnassus Value Equity Fund's objective is to achieve capital appreciation by investing primarily in a diversified portfolio of equity securities. Equity securities include common and preferred stock. Under normal circumstances, the Fund will invest a minimum of 80% of its net assets (plus borrowings for investment purposes) in equity securities. These companies must, in the Adviser's opinion, be undervalued, but they must also have good prospects for long-term capital appreciation over the course of the expected holding period. The Parnassus Value Equity Fund is primarily a large-cap fund, which means that it normally invests more than half of its net assets in large, well-established companies. The Fund may invest to a lesser extent in small- and mid-capitalization companies. The Fund may purchase foreign securities directly on foreign markets. The Fund invests mainly in domestic stocks of companies that are financially sound and have good prospects for the future, and to a lesser extent may also invest in foreign securities of

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|:---|:---|
| ![LOGO](g438872g68i37.jpg) | Summary Prospectus • 2022 |

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similar companies. The Fund is fossil-fuel free, as it does not invest in companies that derive significant revenues from the extraction, exploration, production or refining of fossil fuels; the Fund may invest in companies that use fossil fuel-based energy to power their operations or for other purposes. The Fund defines "significant revenues" as being 10% or greater. To determine a company's prospects, the Adviser reviews the company's income statement, cash flow statement and balance sheet, and analyzes the company's sustainable strategic advantage and management team. Upon initial investment, a company's stock must be deemed to represent relative value. To determine whether the company demonstrates relative value, the Adviser considers the companies valuation relative to its own valuation history and relative to similar companies operating in the same industry. The Adviser also takes ESG factors into account in making investment decisions, as discussed in more detail in the prospectus. The Fund will sell a security if the Adviser believes a company's fundamentals will deteriorate, if it believes a company's stock has little potential for appreciation or if the company no longer meets the Adviser's ESG criteria.

**Principal Risks** 

All investments involve risk, and investing in the Parnassus Value Equity Fund is no exception. You could lose money investing in the Fund. The likelihood of loss may be greater if you invest for a shorter period of time. The Fund is intended for investors who can accept that there will be fluctuations in value. Investments in the Fund are not deposits, endorsements or guarantees of any bank and are not insured by the Federal Deposit Insurance Corporation or any other government agency. The Fund's principal risks include the following:

∎ **Stock Market Risk.** The Fund invests in common stocks, whose prices fluctuate in response to the fortunes of
individual companies and in response to general market and economic conditions both in the U.S. and abroad. In the past decade, financial markets throughout the world have experienced increased volatility, decreased liquidity and heightened
uncertainty. Risks associated with epidemic and pandemic diseases (such as the ongoing threat of the global COVID-19 pandemic), including, without limitation, travel restrictions, closed international borders,
quarantines, disruptions to supply chains and lower consumer

demand; a rise in protectionist trade policies; slowing global economic growth; risks associated with the United Kingdom's departure from the European Union (or "Brexit"); risks associated with international conflicts and wars and the risk of trade disputes and the possibility of changes to some international trade agreements could affect the economies of many nations, including the United States, in ways that cannot be foreseen at the present time, and may adversely impact the markets in which the Fund invests. The Fund's holdings can vary significantly from broad stock market indices. <br>

∎ **Large-Capitalization Company Risk.** Large-capitalization companies may be unable to respond quickly to new
competitive challenges and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion.

∎ **Small- and Mid-Capitalization Company Risk.** In addition to
large-capitalization companies, the Fund may invest in small- and/or mid-capitalization companies, which can be particularly sensitive to changing economic conditions since they do not have the financial
resources or the well-established businesses of large-capitalization companies. Relative to the stocks of large-capitalization companies, the stocks of small- and mid-capitalization companies are often thinly
traded, and purchases and sales may result in higher transaction costs. Also, small-capitalization companies tend to perform poorly during times of economic stress.

∎ **Management Risk.** The Adviser may be wrong in its assessment of a company's value and/or the stocks the Fund
holds may not reach what the Adviser believes are their full values. From time to time, "value" investing falls out of favor with investors, and during those periods the Fund's relative performance may suffer.

∎ **Foreign Securities Risk.** The Fund may invest up to 20% of its assets in foreign securities. Foreign markets can
be more volatile and less liquid than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. Policy and legislative changes in foreign
countries and other events affecting global markets, such as international conflicts and wars, COVID-19 and Brexit, may contribute to decreased

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| | |
|:---|:---|
| Summary Prospectus • 2022 | ![LOGO](g438872g68i37.jpg) |

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liquidity and increased volatility in the financial markets. Further, foreign companies may be subject to significantly higher levels of taxation than U.S. companies, including potentially confiscatory levels of taxation, thereby reducing the earnings potential of such foreign companies. Substantial withholding taxes may also apply to distributions from foreign companies. <br>

∎ **Tax Law Change Risk:** Tax law is subject to change, possibly with retroactive effect, or to different
interpretations. In particular, Congress is considering substantial changes to U.S. federal income tax laws, and some with retroactive effect, that could result in substantial adverse U.S. federal income tax consequences to the Fund and its
shareholders. Any future changes are highly uncertain, and the impact on the Fund or its shareholders cannot be predicted. Prospective shareholders should consult their own tax advisors regarding the impact to them of possible changes in tax laws.

**Performance Information** 

The bar chart and table that follow contain information that allows you to evaluate the Parnassus Value Equity Fund's performance using several measures, such as yearly changes in performance, best and worst quarterly returns, and average annual total returns before and after taxes compared to a broad measure of market performance. The bar chart shows the performance of the Fund's Investor Shares, and the performance of the Fund's Institutional Shares will differ from those shown to the extent that the classes of shares do not have the same expenses or inception date. How the Fund performed in the past (before and after taxes) is not necessarily an indication of how it will perform in the future. Updated performance information is available on the Fund's website, www.parnassus.com, or by calling toll-free at (800) 999-3505.

During the ten-year period shown in the bar chart, the highest return for a quarter was 25.9% (quarter ended December 31, 2020), and the lowest return for a quarter was a loss of 25.0% (quarter ended March 31, 2020).

Following is a table comparing the performance of the Parnassus Value Equity Fund's two share classes with

that of the Russell 1000<sup>®</sup> Value Index and the S&P 500<sup>®</sup> Index (see "Index Descriptions" in the prospectus). Effective September 30, 2021, the Fund changed its broad-based securities market index from the S&P 500<sup>®</sup> Index to the Russell 1000<sup>®</sup> Value Index because it believes that the Russell 1000<sup>®</sup> Value Index better reflects the underlying holdings of the Fund pursuant to its current principal investment strategies. Figures are average annual returns for the one-, five- and ten-year periods ended December 31, 2021. The table is intended to demonstrate the risk of investing in the Fund by showing how the Fund's average annual total returns, before and after taxes, compare with a broad measure of market performance, the Russell 1000<sup>®</sup> Value and S&P 500<sup>®</sup>, and also how the Fund's performance varies from year to year.

![LOGO](g438872g00a13.jpg)

**Parnassus Value Equity Fund** 

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| | | | |
|:---|:---|:---|:---|
| **Average Annual Total Returns (%)** | **Average Annual Total Returns (%)** | **Average Annual Total Returns (%)** | **Average Annual Total Returns (%)** |
| **(all periods ended December 31, 2021)** | **(all periods ended December 31, 2021)** | **(all periods ended December 31, 2021)** | **(all periods ended December 31, 2021)** |
| | **One**<br> **Year** | **Five**<br> **Years** | **Ten**<br> **Years** |
| **Investor Shares** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Return Before Taxes | 31.12 | 18.21 | 18.56 |
| &nbsp;&nbsp;&nbsp;&nbsp; Return After Taxes on Distributions | 26.48 | 16.31 | 16.63 |
| &nbsp;&nbsp;&nbsp;&nbsp; Return After Taxes on Distributions and Sale of Fund Shares | 21.57 | 14.34 | 15.14 |
| **Institutional Shares** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Return Before Taxes | 31.37 | 18.47 | 18.74 |
| **Russell 1000<sup>®</sup> Value Index (reflects no deduction for fees, expenses or taxes)** | 25.16 | 11.16 | 12.97 |
| **S&P 500<sup>®</sup> Index (reflects no deduction for fees, expenses or taxes)** | 28.71 | 18.47 | 16.55 |

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| | |
|:---|:---|
| ![LOGO](g438872g68i37.jpg) | Summary Prospectus • 2022 |

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The after-tax returns are calculated using the historical highest individual stated federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's individual tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Return After Taxes on Distributions and Sale of Fund Shares may be higher than other returns for the same period due to a tax benefit of realizing a capital loss upon the sale of Fund shares. After-tax returns are shown for Investor Shares only. After-tax returns for Institutional Shares will vary.

Parnassus Value Equity Fund—Institutional Shares were incepted on April 30, 2015. Performance shown prior to the inception of the Institutional Shares reflects the performance of the Parnassus Value Equity Fund—Investor Shares and includes expenses that are not applicable to and are higher than those of the Institutional Shares.

**The Adviser** 

Parnassus Investments, LLC is the investment adviser to the Parnassus Value Equity Fund. For more information on the Adviser, please see "Management of the Funds" in the prospectus and "The Adviser" in the statement of additional information.

**Portfolio Managers** 

**Billy J. Hwan** is the lead Portfolio Manager of the Parnassus Value Equity Fund and has served as a portfolio manager of the Fund since 2018.

**Krishna S. Chintalapalli** is a Portfolio Manager of the Parnassus Value Equity Fund and has served as a portfolio manager of the Fund since 2022.

For more information, please see "Management of the Funds" in the prospectus and "Portfolio Managers" in the statement of additional information.

For important information about the purchase and sale of Fund shares, tax information and payments to financial intermediaries, please turn to "Additional Summary Information" on page 26 of the prospectus.

**Additional Summary Information** 

**Purchase and Sale of Fund Shares** 

The minimum initial purchase for the Investor Shares is $2,000 per Fund, with a minimum of $500 per Fund for certain custodial accounts and IRAs. The minimum initial purchase for the Institutional Shares is $100,000. The minimum subsequent investment is $50 per Fund.

After making an initial investment, the minimum investment in an automatic investment plan is $50 per Fund.

You may redeem and purchase shares of a Fund each day the New York Stock Exchange ("NYSE") is open. You may redeem or purchase Fund shares online through our website at www.parnassus.com, by mail (Parnassus Funds, c/o Ultimus Fund Solutions, LLC, P.O. Box 541150, Omaha, NE 68154-9150), or by telephone at (800) 999-3505. Investors who wish to redeem or purchase shares through a broker-dealer or other financial intermediary should contact the intermediary regarding the hours during which orders may be placed.

For additional information, please see "Investing with Parnassus Funds" on page 33 of the prospectus.

**Tax Information** 

The Funds' distributions generally will be taxable to you, whether they are paid in cash or reinvested in Fund shares, unless you invest through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case such distributions may be taxable at a later date.

**Financial Intermediary Compensation** 

If you purchase a Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.

For additional information, please see "Distribution Agreement," "Shareholder Servicing Plan" and "Additional Marketing and Support Payments" in the statement of additional information.

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**Investment Adviser** 

Parnassus Investments

1 Market Street, Suite 1600

San Francisco, CA 94105

**Independent Registered Public Accounting Firm** 

PricewaterhouseCoopers LLP

405 Howard Street, Suite 600

San Francisco, CA 94105

**Legal Counsel** 

Foley and Lardner LLP

777 E. Wisconsin Ave.

Milwaukee, WI 53202

**Distributor** 

Parnassus Funds Distributor, LLC

Three Canal Plaza, Suite 100

Portland, ME 04101

![LOGO](g438872g42n45.jpg)

![LOGO](g438872g62r17.jpg)

You can obtain additional information about each of the Funds in the statement of additional information (SAI) dated May 1, 2022, which has been filed with the Securities and Exchange Commission (SEC) and is incorporated in this prospectus by reference (namely, it legally forms a part of the prospectus). The Funds also publish an annual and a semiannual report and two quarterly reports each year that discuss the Funds' holdings and how recent market conditions as well as the Funds' investment strategies affected performance. For a free copy of any of these documents or to ask questions about the Funds, call the Parnassus Funds at (800) 999-3505.

The Funds make available the SAI and the annual and semiannual reports, free of charge, on their Internet website (http://www. parnassus.com). This information may also be reviewed and copied at the Public Reference Room of the SEC in Washington, D.C. or by visiting the SEC's Internet website at http://www.sec.gov. In addition, copies of this information may be obtained after paying a duplicating fee by emailing the Public Reference Room of the SEC at publicinfo@sec.gov or by writing to: Public Reference Room, Securities and Exchange Commission, Washington, D.C. 20549-1520. You may also call the SEC at (202) 551-8090 for information on the operation of the Public Reference Room.

The Investment Company Act File Number for Parnassus Income Funds is 811-06673. The Investment Company Act File Number for Parnassus Funds is 811-04044.

![LOGO](g438872g20s75.jpg)

**1 Market Street, Suite 1600, San Francisco, CA 94105**<sub>^</sub>**(800) 999-3505**<sub>^</sub>**www.parnassus.com**