@OLD-GAL = the simple asnwer is 'no'.
"unrealized gains' which is what I think you are trying to describe are not taxable
you are liable for tax on income from the mutual fund if
a) you sell the shares
b) the mututal fund distributes income (even if you reinvest the income)
c) the mutual fund declares a capital gains distribution (even if you reinvest the distribution)
you didn't state it, but if this mutual fund is held by an IRA or 401(k), there is no tax even if a), b) or c) occur. The tax would only be an issue if you distributed money from the IRA or 401(k).
