The Capital Gains and Earnings of Mutual Funds

The capital gains and earnings of mutual funds

A) are taxed at a lower rate than individuals', a major aspect of their popularity.
B) are taxed only on the interest income, not the capital gains, a major aspect of their popularity.
C) are not taxed as long as they distribute a very high proportion of earnings to shareholders who pay taxes on gains and income.
D) are not taxed only as long as they invest in tax-free municipal securities.