Parnassus Growth Equity Fund Investor Shares (PFGEX)

Overview

The fund highlighted in the description operates within the financial sector, focusing predominantly on investment in equity securities of large-sized growth companies. By dedicating at least 80% of its net assets, plus any borrowings meant for investment purposes, the fund prioritizes investments in entities that show significant potential for growth and expansion. These equity securities comprise common stocks, depositary receipts, and interests in real estate investment trusts (REITs), providing a diversified portfolio for investors seeking exposure to the growth segment of the market. Additionally, the fund retains the flexibility to invest up to 20% of its net assets in small- and mid-capitalization companies, allowing it to capitalize on opportunities across a broader spectrum of the market while still focusing on its primary investment strategy in large-sized growth companies.

Products and Services

• Equity Securities of Large-Sized Growth Companies

This category represents the core of the fund's investment strategy, with a focus on acquiring equity securities, including common stocks, depositary receipts, and interests in real estate investment trusts (REITs), of large-sized companies that are characterized by their potential for growth. This focus enables investors to primarily benefit from the advancement and scaling of established companies within various sectors.

• Common Stocks

As a component of the equity securities, common stocks constitute a significant portion of the fund's investments. This form of equity security represents ownership in a company and offers investors the potential for capital appreciation as the company grows, in addition to dividends if they are distributed by the company.

• Depositary Receipts

Depositary receipts are another form of equity security within the fund’s portfolio, serving as a vehicle for investing in foreign companies. These instruments allow investors to gain exposure to overseas markets and companies without dealing with the complexities of investing directly in foreign securities.

• Interests in Real Estate Investment Trusts (REITs)

By including interests in REITs, the fund diversifies its investment approach further, allowing investors access to the real estate sector through companies that own, operate, or finance income-generating real estate across a range of property sectors. REITs offer the potential for dividend income along with long-term capital appreciation.

• Investments in Small- and Mid-Capitalization Companies

Though the fund predominantly focuses on large-sized growth companies, it maintains the flexibility to invest up to 20% of its net assets in small- and mid-capitalization companies. This component of the fund's strategy enables it to pursue opportunities in emerging companies that possess the potential for significant growth, thereby diversifying the investment portfolio and potentially enhancing returns.