You will get a capital gain and/or a dividend usually in December. typically this is reinvested (recommended) because that's how you make money in mutual funds over the long term.
If you have a cash flow issue with taxes you may be forced to sell some of your fund to pay the tax.
Then you will pay tax again on any gain from what you sold to pay tax.
This is call confiscation from the middle class to transfer benefits to the poor.
