Question: please please help 2 What impact does a capital gains distribution have on the NAVPS of a mutual fund? Are there tax implications for investors

 please please help 2 What impact does a capital gains distribution

please please help

2 What impact does a capital gains distribution have on the NAVPS of a mutual fund? Are there tax implications for investors who continue to hold the fund? 3. What are the potential tax implications when an investor decides to automatically reinvest fund distributions into additional non-registered fund units? 4. An investor bought $5,000 of TBA Equity Fund units four years ago and chooses to reinvest all fund distributions into additional units. The investor sells the fund this year when the holdings are worth $12,000. Over the holding period, the investor received $2,500 in reinvested dividends. Will the investor report a capital gain of $7,000? Explain

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