Parnassus Mid Cap Fund SM Fourth Quarter 2015 All information, unless otherwise indicated, is as of 12/31/2015 Portfolio Managers Fund Characteristics Fund Russell Midcap Index Matthew D. Gershuny Ave Weighted Mkt Cap ($Bn) $12.6 $12.2 P/E Ratio 23.2x P/B Ratio • Director of Research, Portfolio Manager • With firm since 2006 • Investment industry since 1997 • Portfolio Manager since 2008 • M.B.A., Michigan University 2006 • B.A., Philosophy, Cornell University 1995 Lori A. Keith • Portfolio Manager, Senior Research Analyst • With firm since 2005 • Investment industry since 1994 • Portfolio Manager since 2008 • M.B.A., Harvard Business School 2000 • B.A., Economics, University of California, Los Angeles 1989 Number of Holdings Portfolio Turnover (2015 Annual) Fund Facts Investor Shares Institutional Shares Ticker PARMX PFPMX 19.9x CUSIP 701765885 701765505 3.0x 2.3x Minimum Investment $2,000 $100,000 42 831 Gross Expense Ratio 1.09% 0.94% 58.0% - Net Expense Ratio 0.99% 0.85% 4/29/2005 4/30/2015 Average Weighted Market Cap is the average capitalization of all stocks in the portfolio, weighted by each holding’s size in the portfolio. Price/Earnings (P/E) Ratio is a ratio of a stock’s current price to its per-share earnings over the past 12 months (or “trailing” 12 months).

Price/Book (P/B) Ratio is the ratio of a stock’s latest closing price divided by its book value per share. Inception Date Distribution Frequency Annually Total Net Assets $554.6MM E  xpenses based on total net assets, net of reimbursement. As described in the Fund’s current prospectus dated May 1, 2015, Parnassus Investments has contractually agreed to limit total operating expenses to 0.99% of net assets for the Parnassus Mid Cap Fund—Investor Shares and to 0.85% of net assets for the Parnassus Mid Cap Fund— Institutional Shares. This agreement will not be terminated prior to May 1, 2017, and may be continued indefinitely by the Adviser on a year-to-year basis. Firm Overview Parnassus Investments® is an independent and employee-owned investment management company based in San Francisco, CA. Founded in 1984, the firm seeks to invest in businesses that have increasingly relevant products or services, sustainable competitive advantages, quality management teams and ethical business practices.

We believe the most attractive opportunities for investments are when companies with good business fundamentals become temporarily undervalued due to market sentiment. Fund Statistics (5 Year) Alpha 1.71% - Beta 0.86 1.00 R-Squared 0.91 1.00 Sharpe Ratio 1.00 0.88 11.68% 13.05% Downside Risk 6.80% 3.94% - Active Share 95.12% Style 7.64% Tracking Error Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha.

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1.00 means that the share price moves exactly in line with the market. A beta over 1.00 suggests that the share price will typically be more volatile than the market, and conversely, a beta below 1.00 indicates that the share price will typically be less volatile than the market.

R-Squared is a measurement of how closely the portfolio’s performance correlates with the performance of a benchmark index such as the Russell Midcap Index. Standard Deviation is a calculation used to measure Russell Midcap Index Standard Deviation Total Assets Under Management: $15.6 billion Investor Shares - variability (risk) of a portfolio’s performance. Sharpe Ratio is 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. Downside Risk is a statistical measurement of a portfolio’s dispersion below the mean return of a benchmark. Tracking Error is the standard deviation of the difference between the portfolio return and the desired investment benchmark return.

Active Share measures the percentage amount your portfolio differs from a passive benchmark. Risks: The Fund’s 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 Parnassus Funds’ equity style box is based on the portfolio’s overall targeted capitalization range and relative valuation. Large Cap Mid Cap Lipper Category: Mid-Cap Core Small Cap Value Core Growth economic conditions.

Security holdings in the fund can vary significantly from broad market indexes. The Fund invests in the stocks of small and mid-cap companies, which are generally riskier than larger companies, and the Fund’s share price may be more volatile than funds that invest in larger companies. PARNASSUS INVESTMENTS® 1 Market Street, Suite 1600 San Francisco, CA 94105 www.parnassus.com (800) 999-3505 .