When you own a mutual fund, you are liable for paying taxes on dividends and capital gains, even if these are reinvested in your account and you never actually receive a cheque for them.

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When you own a mutual fund, you are liable for paying taxes on dividends and capital gains, even if these are reinvested in your account and you never actually receive a cheque for them. This is because the reinvested dividends and capital gains are still considered income for tax purposes.

When You Own a Mutual Fund, You Are Liable for Paying