I have been contributing to a mutual funds account (non-retirement) each month. Since, it is a non-retirement account I can pull out funds anytime I want. I want to ask if I pull out part of the funds within a year will it incur short term capital gains or long term capital gains. My main confusion is that each month, I contribute some amount so if I pull out the money will it use the initial contribution/funds first and incur long term capital gains or will it use latest funds and incur short term capital gains.
I am in USA.