Ummm, no. That's not how it works in a taxable mutual fund. You're not taxed on the growth, but on the proceeds (capital gains) that were generated during the fund year by the selling of stocks internal to the fund. You have the option of taking the proceeds in a payout or being reinvested into the fund. That's different than holding an asset that appreciates and doesn't generate proceeds that can be taken.
I’m sure you saw the words capital gains mentioned. I failed to talk specifically about reinvesting the gains. The point is despite reinvestment those gains can go poof in a short period of time as easily as they can grow. It’s called risk.