Am I paying capital gains twice on my mutual fund?

No. The capital gains you're paying tax on without trading are not the same gains you'll pay tax on if you do trade.

The gains you're paying tax on currently are "a payment to investment company shareholders of profits realized on the sale of its securities... In general, capital gains distributions reduce the value of the fund." It's kind of hard to explain, so if I were you, I'd look it up for a far better explanation than I could give you. :0)

in the long-term you isn't greater effective in a CD. particularly now. Cd's are declining in % because of the fed reducing expenses. Mutual money are super. merely enable em trip for years. additionally you are going to be able to look into tax controlled money which shrink the capital positive factors you pay each and every 3 hundred and sixty 5 days if any in any respect.

Are you in India where you posted, or really in the US?

In the US at least, the amount of capital gains distribution each year is added to your basis, so that accumulated amount isn't taxed when you sell.

You personally are not paying twice. Many experts argue that taxes are paid twice on the earning; once by you and once by the company..

There is no gains or loss unless you sell the shares.