A Mutual Fund is an investment product that pools funds from the public. When funds are collected, the Mutual Fund becomes an entity representing a pool of funds from the public (investors).

The Mutual Fund as an entity has a Net Asset Value (NAV) which serves as the price of the Mutual Fund. This is the result of calculating the total assets of the Mutual Fund (comprising cash, deposits, shares, and bonds) minus the costs of the Investment Manager, Custodian Bank, securities broker, asset purchase settlements, and taxes.

In the NAV calculation, taxes are also one of the obligations paid by the Mutual Fund. Therefore, in this case, investors have actually paid taxes on their investment returns from the Mutual Fund assets indirectly.

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