Mutual funds that receive dividends and capital gains must distribute these to investors in the same year.

Name: Mutual funds that receive dividends and capital gains must distribute these to investors in the same year.
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Mutual funds are required by law to distribute dividends and capital gains to investors at least annually, ensuring that the tax liability is passed on to the investors rather than being retained by the fund itself.

Mutual Funds That Receive Dividends and Capital Gains Must Distribute