# EDGAR Filing Document

**Accession Number:** 0000866256
**File Stem:** 0000897069-22-000688
**Filing Date:** 2023-1
**Character Count:** 26637
**Document Hash:** 2639488cb51dd2dc6fb2ce4ed95fc742
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000897069-22-000688.hdr.sgml**: 20230103

**ACCESSION NUMBER**: 0000897069-22-000688

**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 INCOME FUNDS
- **CENTRAL INDEX KEY:** 0000866256
- **IRS NUMBER:** 946633178
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 497K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 033-36065
- **FILM NUMBER:** 221502689

**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 INCOME FUND
- **DATE OF NAME CHANGE:** 19920703

## Series and Classes Contracts Data

### Parnassus Fixed Income Fund (Series ID: S000000857)

| Class ID   | Class Name           | Ticker Symbol   |
|:---|:---|:---|
| C000002472 | Investor Shares      | PRFIX           |
| C000156017 | Institutional Shares | PFPLX           |

Filed Pursuant to 497(k)<br>1933 Act File No. 033-36065<br>1940 Act File No. 811-06673

![LOGO](g398878g59o64.jpg)

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

(As Amended and Restated January 1, 2023)

**Parnassus Fixed Income Fund<sup>SM</sup>** 

Investor Shares: PRFIX \| Institutional Shares: PFPLX

![LOGO](g398878g70k48.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](g398878g68i37.jpg) |

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**Parnassus Fixed Income Fund** 

**Investment Objective** 

The Parnassus Fixed Income Fund's objective is a high level of current income consistent with safety and preservation of capital.

**Fees and Expenses** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Parnassus Fixed Income 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 Fixed Income 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** | 0.47 | 0.47 |
| **Distribution (12b-1) Fees** |  |  |
| **Other Expenses** | 0.29 | 0.09 |
| &nbsp;&nbsp;&nbsp;&nbsp; Service Fees | 0.18 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; All Remaining Other Expenses | 0.11 | 0.09 |
| **Total Annual Fund Operating Expenses** | 0.76 | 0.56 |
| **Expense Waiver and Reimbursement<sup>1</sup>** | 0.18 | 0.17 |
| **Total Annual Fund Operating Expenses After Expense Waiver and Reimbursement<sup>2</sup>** | 0.58 | 0.39 |

---

<sup>1</sup> Restated to reflect the lowered expense limitation effective as of January 1, 2023.

<sup>2</sup> The investment adviser has contractually agreed to waive 0.10% of its management fee for each class, and to reimburse the Funds for expenses to the extent necessary to limit total annual fund operating expenses to 0.58% of net assets for the Parnassus Fixed Income Fund—Investor Shares and to 0.39% of net assets for the Parnassus Fixed Income Fund—Institutional Shares. This agreement will not be terminated prior to May 1, 2024, and may be continued indefinitely by the investment adviser on a year-to-year basis.

For additional information about the Parnassus Fixed Income 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 Fixed Income 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 waiver and 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** | $59 | $225 | $405 | $925 |
| **Institutional Shares** | $40 | $162 | $296 | $685 |

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**Portfolio Turnover** 

The Parnassus Fixed Income 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 31.3% of the average value of its portfolio.

**Principal Investment Strategies** 

The Parnassus Fixed Income Fund normally invests at least 80% of its net assets (plus borrowings for investment purposes) in a diversified portfolio of bonds and other fixed income instruments. The Fund principally invests in corporate bonds, U.S. Treasuries and supranational bonds, with an emphasis on corporate bonds. Other investments may include convertible bonds and preferred stock. The Fund may also invest in U.S. governmental agencies, commercial and residential mortgage-backed securities and other asset-backed securities. The Fund invests mainly in domestic securities, and to a lesser extent may also invest in U.S. dollar-denominated foreign securities. The Fund may purchase foreign securities directly on foreign markets. The Fund is fossil-fuel free, as it does not invest in companies that derive significant revenues from the extraction, exploration, production or refining

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|:---|:---|
| ![LOGO](g398878g68i37.jpg) | Summary Prospectus • 2022 |

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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. The Fund normally invests at least 80% of its net assets in fixed income securities that have investment-grade ratings (namely rated at least BBB- by Standard & Poor's Rating Group ["S&P"] or at least Baa3 by Moody's Investors Services, Inc. ["Moody's"]) or, if unrated, have been determined by the Adviser to be of similar economic quality. At any given time, up to 20% of the portfolio may be invested in non-investment grade fixed income securities (otherwise known as "high-yield" or "junk bonds") or unrated fixed income securities determined by the Adviser to be of similar economic quality. Non-investment grade and unrated securities are more risky than investment-grade securities. The Fund may also invest in preferred stocks. The Fund's Adviser also takes ESG factors into account when making investment decisions, as discussed in more detail in the prospectus. The Fund may sell a security if the Adviser believes it no longer meets the Fund's investment objective or if the issuer no longer meets the Adviser's ESG criteria. The Fund may invest in long-term, intermediate-term or short-term fixed income securities or any combination thereof, depending on market conditions, and these securities may also have floating or variable interest rates. As of March 31, 2022, the dollar-weighted average maturity of the Fund's portfolio was 11.21 years.

**Principal Risks** 

All investments involve risk, and investing in the Parnassus Fixed Income 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:

∎ **Interest Rate Risk.** In general, bond prices are inversely related to interest rates. As interest rates drop, bond
prices will likely go up, and as interest rates go up, the value of bonds will likely go down. The Fund may be subject to greater risk of rising interest rates due to the current period of historically low interest rates.

∎ **Credit Risk.** There is a possibility that issuers of debt obligations will not pay the Fund interest or principal
or that their credit rating may be downgraded by a ratings agency.

∎ **Duration Risk.** Duration is a measure that relates the expected price volatility of a fixed-income instrument to
changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of the fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates
rise. For example, a fixed-income security with a duration of three years would be expected to decrease in value by approximately 3% if interest rates increase by 1%.

∎ **Market Risk.** A security's value may also be affected by market activity or by supply and demand. 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. If the Fund
is unable to find buyers for a given security, this can have a negative effect on the Fund's net asset value.

∎ **Non-Investment Grade Risk and Unrated Bond Risk.** Non-investment grade bonds (otherwise known as "high-yield" or "junk bonds") and bonds that have not been rated by a nationally recognized statistical rating organization carry additional credit
risk and are considered to be less safe than investment-grade bonds.

∎ **Mortgage-Backed Securities Risk.** Mortgage-backed securities are defined as obligations with pools of mortgages
providing collateral, interest income and principal repayment. Such securities

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|:---|:---|
| Summary Prospectus • 2022 | ![LOGO](g398878g68i37.jpg) |

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can be originated by private institutions or government-sponsored enterprises, like Fannie Mae and Freddie Mac, and the underlying mortgages can be either commercial or residential. Mortgage-backed securities, like all fixed income investments, have interest rate and credit risk. However, these securities also have extension and prepayment risk. Extension risk is the risk that a rise in interest rates or lack of refinancing opportunities can cause the Fund's average maturity to lengthen unexpectedly due to a drop in expected prepayments of mortgage-backed securities. This would increase the Fund's sensitivity to rising rates and its potential for price declines. Prepayment risk is the risk that the borrower will prepay some or all of the principal owed to the issuer. If prepayment occurs, the Fund may have to replace the security by investing the proceeds in a less attractive security. Prepayment may reduce the Fund's share price and income distribution. <br>

∎ **Convertible Securities Risk.** If market interest rates rise, the value of a convertible security usually falls.
The issuer of a convertible security may not be able to pay interest or dividends when due, and their market value may change based on actual or perceived changes in the issuer's creditworthiness. Convertible securities are also subject to the
same types of risk that apply to the underlying security. The Fund may be forced to convert a convertible security at an inopportune time, which may decrease the Fund's return and result in investment losses.

∎ **Preferred Stock Risk.** Preferred stocks may pay fixed or adjustable rates of return and are subject to many of the
risks associated with debt securities (e.g., interest rate risk, call risk and extension risk). In addition, preferred stocks are subject to issuer-specific and market risks applicable generally to equity securities. Because many preferred stocks
allow the issuer to convert their preferred stock into common stock, preferred stocks are often sensitive to declining common stock values. A company's preferred stock generally pays dividends only after the company makes required payments to
holders of its bonds and other debt. For this reason, the value of preferred stocks will usually react more strongly than bonds and other debt to actual or perceived changes in the company's financial condition or prospects.

∎ **Liquidity Risk.** Liquidity risk is the risk, due to certain investments trading in lower volumes or to market and
economic conditions, that the Fund may be unable to find a buyer for its investments when it seeks to sell them or to receive the price it expects based on the Fund's valuation of the investments. Events that may lead to increased redemptions,
such as market disruptions, may also negatively impact the liquidity of the Fund's investments when it needs to dispose of them. The potential for liquidity risk may be magnified by a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds may be higher than normal, potentially causing increased supply in the market due to selling activity. If the Fund is forced to sell its investments at an unfavorable time and/or under
adverse conditions in order to meet redemption requests, such sales could negatively affect the Fund. Liquidity issues may also make it difficult to value the Fund's investments.

∎ **Information Risk.** The risk that information about a security or issuer or the market might not be available,
complete, accurate, or comparable.

∎ **Management Risk.** The Adviser may be wrong in its assessment of a security's value and the Fund's
holdings may not reach what the Adviser believes are their full values.

∎ **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 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.

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|:---|:---|
| ![LOGO](g398878g68i37.jpg) | Summary Prospectus • 2022 |

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∎ **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 Fixed Income 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 4.2% (quarter ended March 31, 2019), and the lowest return for a quarter was a loss of 4.3% (quarter ended March 31, 2021).

Following is a table comparing the performance of the Parnassus Fixed Income Fund's two share classes with that of the Bloomberg U.S. Aggregate Bond Index (formerly known as the Bloomberg Barclays U.S. Aggregate Bond Index) (see "Index Descriptions" in the prospectus). 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 Bloomberg U.S. Aggregate Bond

Index, and a group of similar mutual funds, and also how the Fund's performance varies from year to year.

![LOGO](g398878g00a22.jpg)

**Parnassus Fixed Income 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 | -2.09 | 3.39 | 2.37 |
| &nbsp;&nbsp;&nbsp;&nbsp; Return After Taxes on Distributions | -2.89 | 2.43 | 1.52 |
| &nbsp;&nbsp;&nbsp;&nbsp; Return After Taxes on Distributions and Sale of Fund Shares | -1.10 | 2.22 | 1.55 |
| **Institutional Shares** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Return Before Taxes | -1.90 | 3.62 | 2.50 |
| **Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes)** | -1.54 | 3.57 | 2.90 |

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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 Fixed Income 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 Fixed Income 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 Fixed Income 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.

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|:---|:---|
| Summary Prospectus • 2022 | ![LOGO](g398878g68i37.jpg) |

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**Portfolio Managers** 

**Samantha D. Palm** is the lead Portfolio Manager of the Parnassus Fixed Income Fund and has been a portfolio manager of the Fund since 2013.

**Minh T. Bui** is a Portfolio Manager of the Parnassus Fixed Income Fund and has served in this capacity since 2020.

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 5 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](g398878g42n45.jpg)

![LOGO](g398878g62r17.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](g398878g20s75.jpg)

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