Having trouble finding a Large Cap Value fund? Parnassus Core Equity Fund (PRBLX Quick QuotePRBLX - Free Report) is a possible starting point. PRBLX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Objective

PRBLX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; growth levels; however, growth levels are oftentimes cut back. These funds'high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream fund Large Cap Value funds very appealing.

History of Fund/Manager

Parnassus is based in San Francisco, CA, and is the manager of PRBLX. The Parnassus Core Equity Fund made its debut in September of 1992 and PRBLX has managed to accumulate roughly $9.57 billion in assets, as of the most recently available information. The fund's current manager, Todd C. Ahlsten, has been in charge of the fund since May of 2001.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 8.93%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.56%, which places it in the top third during this time-frame.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 11.71%, the standard deviation of PRBLX over the past three years is 11.89%. Over the past 5 years, the standard deviation of the fund is 11.01% compared to the category average of 11.3%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In PRBLX's case, the fund lost 35.6% in the most recent bear market and outperformed its peer group by 15%. These results could imply that the fund is a better choice than its peers during a sliding market environment.

Nevertheless, investors should also note that the fund has a 5-year beta of 0.86, which means it is hypothetically less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a positive alpha over the past 5 years of 0.8, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Holdings

Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.

As of the last filing date, the mutual fund has 75.73% of its assets in stocks, which have an average market capitalization of $204.68 billion. The fund has the heaviest exposure to the following market sectors:

1. Technology
2. Non-Durable
3. Industrial Cyclical
4. Finance

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PRBLX is a no load fund. It has an expense ratio of 0.86% compared to the category average of 1%. So, PRBLX is actually cheaper than its peers from a cost perspective.

While the minimum initial investment for the product is $2,000, investors should also note that each subsequent investment needs to be at least $50.

Bottom Line

Overall, Parnassus Core Equity Fund ( PRBLX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.

For additional information on the Large Cap Value area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into PRBLX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.