Exploring The Investment Strategy Of Pernassus Core Equity Fund

The Parnassus Core Equity Fund is an investment fund that seeks capital appreciation and current income. The fund typically invests a minimum of 80% of its net assets in equity securities, with at least 75% of its total assets invested in equity securities that pay interest or dividends. As of July 15, 2024, the fund had a Morningstar Medalist Rating and total assets of 31.2 billion USD. The fund's largest holdings as of September 30, 2024, included Alphabet Inc Class A and Mastercard Inc Class A.

Capital appreciation

The Parnassus Core Equity Fund seeks capital appreciation and current income. The fund typically invests a minimum of 80% of its net assets in equity securities, with at least 75% of its total assets invested in equity securities that pay interest or dividends. This strategy aims to provide a balance between capital appreciation and income generation.

The fund's strategy of investing a minimum of 80% of its net assets in equity securities demonstrates a strong focus on capital appreciation. This approach allows the fund to take advantage of the potential for equities to generate significant returns over the long term. Equities tend to have a higher risk-return profile compared to other asset classes, offering the potential for substantial capital gains.

Additionally, the Parnassus Core Equity Fund's emphasis on investing in equity securities that pay interest or dividends provides a source of current income for the fund. This income can be distributed to investors or reinvested to further drive capital appreciation. By targeting investments that offer both capital appreciation and income potential, the fund seeks to provide a balanced approach that can help maximize returns while also providing a steady source of income.

Overall, the Parnassus Core Equity Fund's investment strategy, with its focus on equity securities and balance between capital appreciation and income, offers a solid option for investors seeking long-term growth potential along with current income. The fund's experienced management team and disciplined approach contribute to its ability to pursue capital appreciation effectively while managing risk.

Interest and dividends

The Parnassus Core Equity Fund seeks capital appreciation and current income. The fund typically invests a minimum of 80% of its net assets and borrowings in equity securities. At least 75% of the fund's total assets are invested in equity securities that pay interest or dividends.

The fund's total net assets are valued at $14.343 billion, with a net expense ratio of 0.61%. The 52-week range for the fund's share price is 46.45 to 56.14, and it has a 52-week average return of 17.53%.

The Parnassus Core Equity Fund is a solid option for investors seeking a balance between capital growth and regular income. The fund's strategy focuses on investing in a diverse range of equity securities, with a significant portion paying interest or dividends. This approach helps generate a steady income stream for investors while also providing the potential for long-term capital appreciation.

For investors considering the Parnassus Core Equity Fund, it is essential to review its holdings, performance, and risk factors. The fund's large asset base and strong average returns indicate its popularity among investors. However, it is always advisable to conduct thorough research and consult with a financial advisor before making any investment decisions.

Security selection

The Parnassus Core Equity Fund is a solid risk-averse option for investors. The fund's security selection process is sensible, clearly defined, and repeatable, and it is this, along with its experienced leaders and time-tested approach, that makes it a top-notch choice.

The fund seeks capital appreciation and current income by investing primarily in equity securities. Under normal circumstances, the fund will invest a minimum of 80% of its net assets, plus any borrowings, in equity securities. This is a key strategy in ensuring the fund's performance objective is met.

At least 75% of the fund's total assets are invested in equity securities that pay interest or dividends. This strategy ensures a steady income stream for the fund and its investors.

The fund's largest holdings as of September 30, 2024, included Alphabet Inc Class A, Mastercard Inc Class A, and Intercontinental Exchange Inc. With 43.7% of assets in the top 10 holdings, the fund maintains a concentrated approach to security selection, focusing on a limited number of high-conviction investments.

The fund's security selection process is based on a fundamental assessment of various pillars, including the clarity of its performance objective and the repeatability of its investment process. This process is overseen by a management team with extensive experience and ability, further contributing to the fund's strong security selection capabilities.

Portfolio construction

The Parnassus Core Equity Fund is a solid, risk-averse option for investors seeking capital appreciation and current income. The fund's portfolio construction is guided by a well-defined and repeatable process, with a focus on investing in equity securities that offer interest or dividends.

Under normal circumstances, the fund typically invests a minimum of 80% of its net assets, plus any borrowings, in equity securities. This strategy ensures a steady stream of income and potential for capital growth. Additionally, at least 75% of the fund's total assets are invested in equity securities that pay interest or dividends, providing a stable foundation for the portfolio.

The fund's experienced leaders and time-tested approach are key advantages in portfolio construction. The management team's expertise guides investment decisions, ensuring a well-diversified and balanced portfolio. The fund's large blend investment style further emphasizes its focus on established, well-known companies with a strong track record.

The Parnassus Core Equity Fund's portfolio holdings include a mix of large-cap companies across various sectors. As of September 30, 2024, the fund had 43.7% of its assets in its top 10 holdings, including Alphabet Inc. Class A and Mastercard Inc. Class A. This diversification across sectors and industries helps mitigate risk and provides exposure to different areas of the market.

Overall, the Parnassus Core Equity Fund's portfolio construction is characterized by a careful selection of established companies with strong fundamentals, a focus on income-generating securities, and a well-diversified approach, making it a solid choice for investors seeking long-term growth and stability.

Risk-averse option

The Parnassus Core Equity Fund is a solid risk-averse option for investors. The fund has a large blend category and investment style, with a focus on socially responsible investments. With a history dating back to 1992, the fund has a proven track record of strong performance, outpacing its category average over the years.

The fund's experienced leaders, Todd Ahlsten and Benjamin Allen, and its time-tested approach make it a top-notch choice for those seeking a more conservative investment strategy. The fund primarily invests in stocks of large domestic companies, with a tilt towards large- and mid-cap U.S. stocks, and has a weighted average market capitalization of $87.1 billion.

The fund's top holdings include well-known companies such as Danaher Corp., Motorola Inc., Mondelēz International, Intel Corp., and Procter & Gamble Corp. The investment team carefully considers a company's environmental, social, and governance factors before investing, in addition to using traditional fundamental metrics to identify risks and opportunities.

With a focus on long-term performance, the Parnassus Core Equity Fund has returned 11.72% over the past year, 9.16% over three years, 11.54% over five years, and an impressive 10.65% over the past decade, outperforming its benchmark. The fund's low commission rates, starting at $0 for U.S. listed stocks and ETFs, make it an attractive option for investors seeking a balance between risk and return.

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