Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (n-q)

PARNASSUS FUNDS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-04044

Parnassus Funds

(Exact name of registrant as specified in charter)

1 Market Street, Suite 1600, San Francisco, California 94105

(Address of principal executive offices) (Zip code)

Marc C. Mahon

Parnassus Funds

1 Market Street, Suite 1600, San Francisco, California 94105

(Name and address of agent for service)

Registrant’s telephone number, including area code: (415) 778-0200

Date of fiscal year end: December 31

Date of reporting period: September 30, 2012

ITEM 1. SCHEDULE OF INVESTMENTS.

PARNASSUS FUND

Portfolio of Investments as of September 30, 2012 (unaudited)

Shares		Equities	Percent of Net Assets			Market Value

		Apparel
	150,000	Coach Inc.		2.0	%	$	8,403,000

		Building Materials
	25,000	Simpson Manufacturing Co., Inc.		0.2	%	$	715,500

		Chemicals
	250,000	Calgon Carbon Corp. ^θ		0.8	%	$	3,577,500

		Communications Equipment
	240,000	QUALCOMM Inc.		3.5	%	$	14,997,600

		Data Storage
	750,000	Brocade Communications Systems Inc. ^θ		1.0	%	$	4,436,250

		Electronic Components
	1,200,000	Corning Inc.		3.7	%	$	15,780,000

		Financial Services
	125,000	Capital One Financial Corp.				$	7,126,250
	1,075,000	Charles Schwab Corp.					13,749,250
	700,000	First Horizon National Corp.					6,741,000
	250,000	JPMorgan Chase & Co.					10,120,000
	450,000	Wells Fargo & Co.					15,538,500
				12.5	%	$	53,275,000

		Food Products
	125,000	PepsiCo Inc.		2.1	%	$	8,846,250

		Home Builders
	500,000	DR Horton Inc.				$	10,320,000
	850,000	PulteGroup Inc. ^θ					13,175,000
	240,000	Toll Brothers Inc. ^θ					7,975,200
				7.4	%	$	31,470,200

		Industrial Manufacturing
	50,000	Teleflex Inc.		0.8	%	$	3,442,000

		Insurance
	120,000	Cigna Corp.				$	5,660,400
	95,000	Verisk Analytics Inc. ^θ					4,522,950
				2.4	%	$	10,183,350

		Internet
	17,000	Google Inc. ^θ		3.0	%	$	12,826,500

		Machinery
	65,000	Deere & Co.		1.3	%	$	5,361,850

		Media
	200,000	Scripps Networks Interactive Inc.		2.9	%	$	12,246,000

		Medical Equipment
	75,000	Thermo Fisher Scientific Inc.		1.0	%	$	4,412,250

		Networking Products
	750,000	Cisco Systems Inc.				$	14,317,500
	925,000	Riverbed Technology Inc. ^θ					21,524,750
				8.4	%	$	35,842,250

		Oil & Gas
	690,000	W&T Offshore Inc.		3.0	%	$	12,958,200

		Pharmaceuticals
	90,000	Gilead Sciences Inc. ^θ				$	5,969,700
	100,000	Novartis AG (ADR)					6,126,000
				2.8	%	$	12,095,700

		Professional Services
	400,000	Insperity Inc.		2.4	%	$	10,092,000

		Retail
	350,000	Lowe's Cos., Inc.				$	10,584,000
	185,000	Target Corp.					11,741,950
				5.2	%	$	22,325,950

		Semiconductor Capital Equipment
	1,750,000	Applied Materials Inc.		4.6	%	$	19,538,750

		Semiconductors
	125,000	EZchip Semiconductor Ltd. ^{θ, λ}				$	3,823,750
	575,000	Intel Corp.					13,041,000
				4.0	%	$	16,864,750

		Software
	400,000	Adobe Systems Inc. ^θ				$	12,984,000
	75,000	Autodesk Inc. ^θ					2,502,750
	125,000	Microsoft Corp.					3,722,500
				4.5	%	$	19,209,250

		Telecommunications Equipment
	1,450,000	Ciena Corp. ^{θ, λ}				$	19,720,000
	1,325,000	Finisar Corp. ^θ					18,947,500
	1,500,000	Harmonic Inc. ^θ					6,810,000
	5,000	Motorola Solutions Inc.					252,750
				10.7	%	$	45,730,250

		Transportation
	175,000	C.H. Robinson Inc.		2.4	%	$	10,246,250


		Total investment in equities
		(cost $348,966,582)		92.6	%	$	394,876,600


	Principal Amount $	Short-Term Securities		Percent of Net Assets			Market Value

		Certificates of Deposit ^α
	100,000	Albina Community Bank 0.40%, matures 01/24/2013				$	98,722
	100,000	Carver Federal Savings Bank 0.69%, matures 02/18/2013					98,444
	100,000	Community Bank of the Bay 0.40%, matures 07/15/13					96,833
	100,000	Eastern Bank 0.10%, matures 01/29/2013					98,656
	100,000	Latino Community Credit Union 0.80%, matures 02/20/2013					98,426
	100,000	Metro Bank 0.30%, matures 05/10/2013					97,556
	100,000	Opportunities Credit Union 0.20%, matures 04/25/2013					97,710
	100,000	Self-Help Credit Union 1.05%, matures 01/14/2013					98,830
	100,000	Southern Bancorp Bank 0.50%, matures 01/12/2013					98,853
				0.2	%	$	884,030

		Community Development Loans ^α
	200,000	Boston Community Loan Fund 1.00%, matures 04/15/2013					193,458
	200,000	Root Capital Loan Fund 1.50%, matures 01/25/2013					195,518
	100,000	Vermont Community Loan Fund 1.00%, matures 10/15/2012					99,685
				0.1	%	$	488,661

		Time Deposits
	34,015,044	BBH Cash Management Service
		Citibank, London
		0.03%, due 10/01/2012		8.0	%	$	34,015,044

		Securities Purchased with Cash Collateral from Securities Lending

		Registered Investment Companies
	14,099,885	Invesco Aim Government & Agency Portfolio
		Short-Term Investments Trust, Institutional Class
		variable rate, 0.03%		3.3	%	$	14,099,885

		Total short-term securities
		(cost $49,487,620)		11.6	%	$	49,487,620


		Total securities
		(cost $398,454,202)		104.2	%	$	444,364,220


		Payable upon return of securities loaned		-3.3	%	$	(14,099,885	)

		Other assets and liabilities - net		-0.9	%	$	(3,969,118	)


		Total net assets		100.0	%	$	426,295,217


		θ This security is non-income producing.

		α Market value adjustments have been applied to these securities to reflect early withdrawal.

		λ This security, or partial position of this security, was on loan at September 30, 2012.

		The total value of the securities on loan at September 30, 2012 was $13,813,629.

The portfolio of investments as of September 30, 2012 has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund, portfolio holdings and other significant accounting policies, please see the fund's most recent prospectus and annual report.

Income Taxes:
At September 30, 2012, the net unrealized appreciation (depreciation) based on the cost of long-term investments of securities for income tax purposes was as follows:

	Parnassus
	Fund

Cost of long-term investments	$	350,139,101
Unrealized appreciation	$	62,940,960
Unrealized depreciation		(18,203,461	)

Net unrealized appreciation	$	44,737,499

The Parnassus Fund follows Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosure, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund's portfolio of investments. These inputs are summarized in three levels: Level 1 - unadjusted quoted prices in active markets for identical investments, Level 2 - other significant observable inputs (including quoted prices for similar investments) and Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).

The Fund adopted Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2010-06 (“ASU 2010-06”), Improving Disclosures about Fair Value Measurements, which, among other things, amends ASC 820 to require entities to separately present purchases, sales, issuances, and settlements in their reconciliation of Level 3 fair value measurements (i.e., to present such items on a gross basis rather than on a net basis), and requires additional disclosure related to recurring and nonrecurring fair value measurements with respect to transfer in and out of Levels 1 and 2. It also clarifies existing disclosure requirements provided by ASC 820 regarding the level of disaggregation and the inputs and valuation techniques used to measure fair value.

The following table summarizes the portfolio's financial assets as of September 30, 2012, that is valued at fair value on a recurring basis:

Investment Securities		Level 1		Level 2		Level 3		Total
Equities:
Consumer Discretionary	$	74,445,150	$	-	$	-	$	74,445,150
Consumer Staples		8,846,250		-		-		8,846,250
Energy		12,958,200		-		-		12,958,200
Financials		53,275,000		-		-		53,275,000
Health Care		25,610,350		-		-		25,610,350
Industrials		30,938,550		-		-		30,938,550
Information Technology		185,225,600		-		-		185,225,600
Materials		3,577,500		-		-		3,577,500
Short-Term Investments		48,114,929		-		1,372,691		49,487,620
Total	$	442,991,529	$	-	$	1,372,691	$	444,364,220

The following table reconciles the valuation of the Fund's Level 3 investment securities and related transactions as of September 30, 2012:


Certificates of Deposit & Community Development Loans
Balance as of December 31, 2011	$	1,378,825
Discounts/premiums amortization		(6,134	)
Purchases		-
Sales		-
Balance as of September 30, 2012	$	1,372,691

Quantitative information about Level 3 fair value measurements:

	Fair Value at		Valuation		Range
	September 30, 2012		Technique	Unobservable Input	(Weighted Average)

Certificates of Deposit	$	884,030	Liquidity Discount	Discount for Lack of Marketability	0% - 4% (4%)

Community Development Loans	$	488,661	Liquidity Discount	Discount for Lack of Marketability	0% - 6% (3%)
				Probability of Default	0% - 6% (3%)

The significant unobservable inputs used in fair value measurement of the Fund's Certificates of Deposits are a discount for lack of marketability. The significant unobservable inputs used in the fair value measurement of the Fund's Community Development Loans are a discount for lack of marketability and a discount for the probability of default. Significant increases in any of these inputs in isolation would result in a lower fair value measurement. Generally, a change in the assumption used for probability of default should be accompanied by a directionally-similar change in the assumption used for the lack of marketability.

In accordance with procedures established by the Fund's trustees, all fair value securities as submitted by the Fund's treasurer, are reviewed and approved by the Trustees. The Fund's valuation committee is comprised of independent trustees who also comprise the Fund's audit committee. The committee reviews the methodologies used by the Fund's when securities have been identified as being fair valued and include the percentages used when determining liquidity discounts or discounts to be taken for lack of marketability. The Trustees review the changes in fair value measurement and methods used to substantiate the unobservable inputs on a quarterly basis.

PARNASSUS MID-CAP FUND

Portfolio of Investments as of September 30, 2012 (unaudited)

Shares		Equities	Percent of Net Assets			Market Value

		Apparel
	35,000	Coach Inc.		1.8	%	$	1,960,700

		Chemicals
	45,000	Compass Minerals International Inc.		3.2	%	$	3,356,550

		Consulting Services
	11,100	Teradata Corp. ^θ		0.8	%	$	837,051

		Data Processing
	55,000	Equifax Inc.				$	2,561,900
	28,500	Fiserv Inc. ^θ					2,109,855
	70,000	Paychex Inc.					2,330,300
				6.6	%	$	7,002,055

		Financial Services
	16,500	Capital One Financial Corp.				$	940,665
	207,500	Charles Schwab Corp.					2,653,925
	283,000	First Horizon National Corp.					2,725,290
	121,000	SEI Investments Co.					2,595,450
				8.4	%	$	8,915,330

		Food Products
	28,500	McCormick & Co.				$	1,768,140
	117,500	Sysco Corp.					3,674,225
				5.1	%	$	5,442,365

		Health Care Products
	70,000	DENTSPLY International Inc.		2.5	%	$	2,669,800

		Industrial Manufacturing
	41,400	Pentair Inc. ^λ				$	1,842,714
	60,000	Teleflex Inc.					4,130,400
				5.6	%	$	5,973,114

		Insurance
	35,000	Verisk Analytics Inc. ^θ		1.6	%	$	1,666,350

		Media
	36,000	Scripps Networks Interactive Inc.		2.1	%	$	2,204,280

		Medical Equipment
	79,000	Patterson Companies Inc.		2.5	%	$	2,704,960

		Natural Gas
	25,700	Energen Corp.				$	1,346,937
	100,000	MDU Resources Group Inc.					2,204,000
	79,000	Spectra Energy Corp.					2,319,440
				5.5	%	$	5,870,377

		Oil & Gas
	17,460	Concho Resources Inc. ^θ				$	1,654,335
	53,600	Noble Corp.					1,917,808
	57,500	Ultra Petroleum Corp. ^{θ, λ}					1,263,850
				4.5	%	$	4,835,993

		Pharmaceuticals
	56,000	Valeant Pharmaceuticals International Inc. ^θ		2.9	%	$	3,095,120

		Professional Services
	106,000	Insperity Inc.				$	2,674,380
	107,500	Iron Mountain Inc.					3,666,825
				6.0	%	$	6,341,205

		Retail
	20,950	Nordstrom Inc.		1.1	%	$	1,156,021

		Semiconductor Capital Equipment
	287,500	Applied Materials Inc.		3.0	%	$	3,209,938

		Services
	21,000	Ecolab Inc.		1.3	%	$	1,361,010

		Software
	50,000	Adobe Systems Inc. ^θ				$	1,623,000
	57,500	Check Point Software Technologies Ltd. ^θ					2,769,200
	77,000	Synopsys Inc. ^θ					2,542,540
	45,000	VeriSign Inc. ^{θ, λ}					2,191,050
				8.6	%	$	9,125,790

		Telecommunications Equipment
	65,000	Motorola Solutions Inc.		3.1	%	$	3,285,750

		Telecommunications Provider
	157,500	Shaw Communications Inc. ^λ		3.0	%	$	3,228,750

		Transportation
	55,485	C.H. Robinson Inc.		3.1	%	$	3,248,647

		Utility & Power Distribution
	76,000	AGL Resources Inc.				$	3,109,160
	210,000	Questar Corp.					4,269,300
				6.9	%	$	7,378,460

		Waste Management
	120,000	Waste Management Inc.		3.6	%	$	3,849,600


		Total investment in equities
		(cost $89,250,498)		92.8	%	$	98,719,216


	Principal Amount $	Short-Term Securities		Percent of Net Assets			Market Value

		Time Deposits
	10,240,212	BBH Cash Management Service
		Citibank, London 0.03%, due 10/01/2012		9.6	%	$	10,240,212

		Securities Purchased with Cash Collateral from Securities Lending

		Registered Investment Companies
	5,444,236	Invesco Aim Government & Agency Portfolio
		Short-Term Investments Trust, Institutional Class
		variable rate, 0.03%		5.1	%	$	5,444,236

		Total short-term securities
		(cost $15,684,448)		14.7	%	$	15,684,448


		Total securities
		(cost $104,934,946)		107.5	%	$	114,403,664


		Payable upon return of securities loaned		-5.1	%	$	(5,444,236	)

		Other assets and liabilities - net		-2.4	%	$	(2,561,903	)


		Total net assets		100.0	%	$	106,397,525


		θ This security is non-income producing.

		λ This security, or partial position of this security, was on loan at September 30, 2012.

		The total value of the securities on loan at September 30, 2012 was $5,312,782.


Income Taxes:
At September 30, 2012, the net unrealized appreciation (depreciation) based on the cost of long-term investments of securities for income tax purposes was as follows:

	Parnassus
	Mid-Cap Fund

Cost of long-term investments	$	89,281,521
Unrealized appreciation	$	10,676,607
Unrealized depreciation		(1,238,912	)

Net unrealized appreciation	$	9,437,695

The Parnassus Mid-Cap Fund follows Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosure, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund's portfolio of investments. These inputs are summarized in three levels: Level 1 - unadjusted quoted prices in active markets for identical investments, Level 2 - other significant observable inputs (including quoted prices for similar investments) and Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).

The following table summarizes the portfolio's financial assets as of September 30, 2012, that is valued at fair value on a recurring basis:

Investment Securities		Level 1		Level 2		Level 3		Total
Equities:
Consumer Discretionary	$	8,549,751	$	-	$	-	$	8,549,751
Consumer Staples		5,442,365		-		-		5,442,365
Energy		8,502,370		-		-		8,502,370
Financials		8,915,330		-		-		8,915,330
Health Care		12,600,280		-		-		12,600,280
Industrials		19,510,416		-		-		19,510,416
Information Technology		20,898,684		-		-		20,898,684
Materials		4,717,560		-		-		4,717,560
Utilities		9,582,460		-		-		9,582,460
Short-Term Investments		15,684,448		-		-		15,684,448
Total	$	114,403,664	$	-	$	-	$	114,403,664

PARNASSUS SMALL-CAP FUND

Portfolio of Investments as of September 30, 2012 (unaudited)

Shares		Equities	Percent of Net Assets			Market Value

		Apparel
	400,000	Hanesbrands Inc. ^θ		1.9	%	$	12,752,000

		Auto Parts
	540,000	Gentex Corp.		1.4	%	$	9,185,400

		Biotechnology
	100,000	Bio-Rad Laboratories Inc. ^θ				$	10,672,000
	1,735,000	InterMune Inc. ^{θ, λ}					15,562,950
	75,000	Salix Pharmaceuticals Ltd. ^θ					3,175,500
				4.4	%	$	29,410,450

		Building Materials
	190,000	Simpson Manufacturing Co., Inc.		0.8	%	$	5,437,800

		Chemicals
	1,275,000	Calgon Carbon Corp. ^θ				$	18,245,250
	185,000	Compass Minerals International Inc.					13,799,150
				4.8	%	$	32,044,400

		Data Storage
	1,750,000	Brocade Communications Systems Inc. ^θ		1.5	%	$	10,351,250

		Financial Services
	1,350,000	Artio Global Investors Inc. ^λ				$	4,023,000
	1,350,000	First American Financial Corp.					29,254,500
	3,000,000	First Horizon National Corp.					28,890,000
	850,000	Pinnacle Financial Partners Inc. ^θ					16,422,000
				11.7	%	$	78,589,500

		Health Care Products
	125,000	Sirona Dental Systems Inc. ^θ		1.1	%	$	7,120,000

		Health Care Services
	1,150,000	VCA Antech Inc. ^θ		3.4	%	$	22,689,500

		Home Builders
	1,525,000	PulteGroup Inc. ^θ				$	23,637,500
	375,000	Toll Brothers Inc. ^θ					12,461,250
				5.4	%	$	36,098,750

		Industrial Manufacturing
	200,000	Teleflex Inc.		2.1	%	$	13,768,000

		Natural Gas
	175,000	Energen Corp.		1.4	%	$	9,171,750

		Networking Products
	1,300,000	Riverbed Technology Inc. ^θ		4.5	%	$	30,251,000

		Oil & Gas
	475,000	Energy XXI (Bermuda) Ltd.				$	16,601,250
	1,300,000	W&T Offshore Inc.					24,414,000
				6.1	%	$	41,015,250

		Pharmaceuticals
	200,000	Furiex Pharmaceuticals Inc. ^θ		0.6	%	$	3,816,000

		Professional Services
	870,000	Insperity Inc.				$	21,950,100
	180,000	Iron Mountain Inc.					6,139,800
				4.2	%	$	28,089,900

		Semiconductors
	600,000	EZchip Semiconductor Ltd. ^{θ, λ}				$	18,354,000
	3,200,000	PMC-Sierra Inc. ^θ					18,048,000
				5.4	%	$	36,402,000

		Services
	550,000	Arbitron Inc.		3.1	%	$	20,845,000

		Software
	1,375,000	Checkpoint Systems Inc. ^θ				$	11,385,000
	1,300,000	ClickSoftware Technologies Ltd. (ADR)					10,010,000
	680,000	Mentor Graphics Corp. ^θ					10,526,400
	190,000	VeriSign Inc. ^θ					9,251,100
				6.1	%	$	41,172,500

		Telecommunications Equipment
	2,040,000	Ceragon Networks Ltd. ^{θ, λ}				$	11,628,000
	1,925,000	Ciena Corp. ^θ					26,180,000
	1,000,000	DragonWave Inc. ^{θ, λ}					2,240,000
	2,050,000	Finisar Corp. ^θ					29,315,000
	4,875,000	Harmonic Inc. ^θ					22,132,500
				13.6	%	$	91,495,500

		Utility & Power Distribution
	275,000	AGL Resources Inc.				$	11,250,250
	1,025,000	Questar Corp.					20,838,250
				4.7	%	$	32,088,500


		Total investment in equities
		(cost $577,379,057)		88.2	%	$	591,794,450


	Principal Amount $	Short-Term Securities		Percent of Net Assets			Market Value

		Time Deposits
	75,531,868	BBH Cash Management Service
		Bank of NY Mellon, Grand Cayman 0.03%, due 10/01/2012		11.3	%	$	75,531,868

		Securities Purchased with Cash Collateral from Securities Lending

		Registered Investment Companies
	37,438,980	Invesco Aim Government & Agency Portfolio
		Short-Term Investments Trust, Institutional Class
		variable rate, 0.03%		5.5	%	$	37,438,980

		Total short-term securities
		(cost $112,970,848)		16.8	%	$	112,970,848


		Total securities
		(cost $690,349,905)		105.0	%	$	704,765,298


		Payable upon return of securities loaned		-5.5	%	$	(37,438,980	)

		Other assets and liabilities - net		0.5	%	$	3,431,645


		Total net assets		100.0	%	$	670,757,963


		θ This security is non-income producing.

		λ This security, or partial position of this security, was on loan at September 30, 2012.

		The total value of the securities on loan at September 30, 2012 was $36,572,434.

Income Taxes:
At September 30, 2012, the net unrealized appreciation (depreciation) based on thecost of long-term investments of securities for income tax purposes was as follows:

	Parnassus
	Small-Cap Fund

Cost of long-term investments	$	577,412,337
Unrealized appreciation	$	83,041,954
Unrealized depreciation		(68,659,841	)

Net unrealized appreciation	$	14,382,113

The Parnassus Small-Cap Fund follows Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosure, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund's portfolio of investments. These inputs are summarized in three levels: Level 1 - unadjusted quoted prices in active markets for identical investments, Level 2 - other significant observable inputs (including quoted prices for similar investments) and Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).

The following table summarizes the portfolio's financial assets as of September 30, 2012, that is valued at fair value on a recurring basis:

Investment Securities		Level 1		Level 2		Level 3		Total
Equities:
Consumer Discretionary	$	78,881,150	$	-	$	-	$	78,881,150
Energy		50,187,000		-		-		50,187,000
Financials		78,589,500		-		-		78,589,500
Health Care		76,803,950		-		-		76,803,950
Industrials		33,527,700		-		-		33,527,700
Information Technology		209,672,250		-		-		209,672,250
Materials		32,044,400		-		-		32,044,400
Utilities		32,088,500		-		-		32,088,500
Short-Term Investments		112,970,848		-		-		112,970,848
Total	$	704,765,298	$	-	$	-	$	704,765,298

PARNASSUS WORKPLACE FUND

Portfolio of Investments as of September 30, 2012 (unaudited)

Shares		Equities	Percent of Net Assets			Market Value

		Biotechnology
	50,000	Bio-Rad Laboratories Inc. ^θ		2.0	%	$	5,336,000

		Building Materials
	206,300	Simpson Manufacturing Co., Inc.		2.2	%	$	5,904,306

		Communications Equipment
	150,000	QUALCOMM Inc.		3.6	%	$	9,373,500

		Consulting Services
	50,000	Accenture PLC		1.3	%	$	3,501,500

		Cosmetics & Personal Care
	120,000	Procter & Gamble Co.		3.2	%	$	8,323,200

		Data Storage
	475,000	Brocade Communications Systems Inc. ^θ		1.1	%	$	2,809,625

		Electronic Components
	900,000	Corning Inc.		4.5	%	$	11,835,000

		Financial Services
	125,000	Capital One Financial Corp.				$	7,126,250
	750,000	Charles Schwab Corp.					9,592,500
	1,200,000	First Horizon National Corp.					11,556,000
	325,000	Wells Fargo & Co.					11,222,250
				15.1	%	$	39,497,000

		Food Products
	100,000	PepsiCo Inc.		2.7	%	$	7,077,000

		Industrial Manufacturing
	17,500	3M Co.		0.6	%	$	1,617,350

		Insurance
	145,000	Cigna Corp.		2.6	%	$	6,839,650

		Internet
	40,000	eBay Inc. ^θ				$	1,936,400
	9,000	Google Inc. ^θ					6,790,500
				3.3	%	$	8,726,900

		Machinery
	85,000	Deere & Co.		2.7	%	$	7,011,650

		Media
	90,000	Scripps Networks Interactive Inc.		2.1	%	$	5,510,700

		Natural Gas
	70,000	MDU Resources Group Inc.		0.6	%	$	1,542,800

		Networking Products
	400,000	Cisco Systems Inc.				$	7,636,000
	575,000	Riverbed Technology Inc. ^θ					13,380,250
				8.0	%	$	21,016,250

		Pharmaceuticals
	55,000	Gilead Sciences Inc. ^θ				$	3,648,150
	125,000	Novartis AG (ADR)					7,657,500
				4.3	%	$	11,305,650

		Professional Services
	200,000	Insperity Inc.		1.9	%	$	5,046,000

		Retail
	20,000	Costco Wholesale Corp.				$	2,002,500
	190,000	Lowe's Cos., Inc.					5,745,600
	150,000	Target Corp.					9,520,500
				6.6	%	$	17,268,600

		Semiconductor Capital Equipment
	1,100,000	Applied Materials Inc.		4.7	%	$	12,281,500

		Semiconductors
	500,000	Intel Corp.		4.3	%	$	11,340,000

		Software
	250,000	Adobe Systems Inc. ^θ				$	8,115,000
	100,000	Autodesk Inc. ^θ					3,337,000
	125,000	Microsoft Corp.					3,722,500
				5.8	%	$	15,174,500

		Transportation
	150,000	C.H. Robinson Inc.		3.3	%	$	8,782,500


		Total investment in equities
		(cost $204,052,553)		86.5	%	$	227,121,181


	Principal Amount $	Short-Term Securities		Percent of Net Assets			Market Value

		Time Deposits
	37,123,672	BBH Cash Management Service
		Citibank, London 0.03%, due 10/01/2012		14.1	%	$	37,123,672


		Total short-term securities
		(cost $37,123,672)		14.1	%	$	37,123,672


		Total securities
		(cost $241,176,225)		100.6	%	$	264,244,853


		Other assets and liabilities - net		-0.6	%	$	(1,756,388	)


		Total net assets		100.0	%	$	262,488,465


		θ This security is non-income producing.

Income Taxes:
At September 30, 2012, the net unrealized appreciation (depreciation) based on the cost of long-term investments of securities for income tax purposes was as follows:

	Parnassus
	Workplace Fund

Cost of long-term investments	$	204,117,810
Unrealized appreciation	$	27,320,219
Unrealized depreciation		(4,316,848	)

Net unrealized appreciation	$	23,003,371

The Parnassus Workplace Fund follows Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosure, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Various inputs are used in determining the value of the Fund's portfolio of investments. These inputs are summarized in three levels: Level 1 - unadjusted quoted prices in active markets for identical investments, Level 2 - other significant observable inputs (including quoted prices for similar investments) and Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).

The following table summarizes the portfolio's financial assets as of September 30, 2012, that is valued at fair value on a recurring basis:


Investment Securities		Level 1		Level 2		Level 3		Total
Equities:
Consumer Discretionary	$	20,776,800	$	-	$	-	$	20,776,800
Consumer Staples		17,402,700		-		-		17,402,700
Financials		39,497,000		-		-		39,497,000
Health Care		23,481,300		-		-		23,481,300
Industrials		28,361,806		-		-		28,361,806
Information Technology		96,058,775		-		-		96,058,775
Utilities		1,542,800		-		-		1,542,800
Short-Term Investments		37,123,672		-		-		37,123,672
Total	$	264,244,853	$	-	$	-	$	264,244,853

ITEM 2. CONTROLS AND PROCEDURES.

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))) were effective as of a date within 90 days prior to the filing date of this report (the “Evaluation Date”), based on their evaluation of the effectiveness of the Registrant’s disclosure controls and procedures as of the Evaluation Date.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

The certification of Principal Executive Officer and the certification of Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under Act (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Parnassus Funds


	By:	/s/ Jerome L. Dodson
		Jerome L. Dodson Principal Executive Officer

	Date:	November 8, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.