Buy 3 Parnassus Mutual Funds With Distinct Investment Strategies

Parnassus Investments was founded by Jerome L. Dodson in 1984 and offers actively managed mutual funds. The investment approach includes fundamental analysis of companies and assessments of current stock prices and sustainability factors. 

In general, the portfolios are concentrated, as Parnassus endeavors to invest in stocks that the investment team believes trade below their estimated intrinsic value. The research analysts gather information on the companies in which Parnassus could invest regarding issues such as a company’s financial condition and ability to generate earnings, as well as its ability to withstand economic downturns. 

We have picked three Parnassus mutual funds — Parnassus Mid Cap Growth Investor PARNX, Parnassus Core Equity Investor PRBLX and Parnassus Mid-Cap PARMX — which investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or Rank 2 (Buy), with positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds delivered comparatively stronger performance and carry a lower fee.

Parnassus Mid Cap Growth Investor fund invests its net assets (plus borrowings for investment purposes) in mid-sized growth companies, defined at purchase as those with market capitalizations between the smallest and largest constituents of the Russell Midcap Growth Index.

Ian E. Sexsmith has been the lead manager of PARNX since Jan. 29, 2010. Most of the fund’s holdings were in companies such as Teradyne, Inc. (4.5%), Datadog, Inc. (4%) and Rockwell Automation, Inc. (3.6%) as of June 30, 2026.

PARNX’s 3-year and 5-year annualized returns are 13.9% and 3.7%, respectively. Its net expense ratio is 0.82%. PARNX has a Zacks Mutual Fund Rank #2.                   

To see how this fund performed compared to its category, and other 1 (Strong Buy) and 2 Ranked Mutual Funds, please click here.

Parnassus Core Equity Investor fund seeks capital appreciation and current income by investing primarily in a diversified portfolio of equity securities, including common and preferred stock.

Todd C. Ahlsten has been the lead manager of PRBLX since May 1, 2001. Most of the fund’s holdings were in companies such as Alphabet Inc. (4.1%), Applied Materials, Inc. (3.7%) and NVIDIA Corp. (3.6%) as of June 30, 2026.

PRBLX’s 3-year and 5-year annualized returns are 17.3% and 10.2%, respectively. Its net expense ratio is 0.81%. PRBLX has a Zacks Mutual Fund Rank #2.   

Parnassus Mid-Cap fund invests its net assets (plus borrowings for investment purposes) in mid-sized companies, defined at the time of purchase as those with market capitalizations between that of the smallest and largest constituents of the Russell Midcap Index. 

Lori A. Keith has been the lead manager of PARMX since Oct. 1, 2008. Most of the fund’s holdings were in companies such as KLA Corp (4.8%), The Bank of New York Mellon Corp (4.6%) and NXP Semiconductors N.V. (3.5%) as of June 30, 2026.

PARMX’s 3-year and 5-year annualized returns are 12.5% and 3.8%, respectively. Its net expense ratio is 0.95%. PARMX has a Zacks Mutual Fund Rank #2.