What is the FIFO method - deployed to compute capital gains tax on the sale of mutual funds?

FIFO indicates first in first out which means the mutual fund units bought first are sold first. Based on this phenomenon, capital gains tax is computed.
Investopedia

The FIFO Method: First In, First Out

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...