CG
The Carlyle Group Inc. Common Stock
stock NASDAQ

We essentially defer tax in mutual fund and LT/ST CG or CL are triggered upon redemption while in FD it’s what other redditors have mentioned in this thread. OP need first figure out what kind(I.e nature) of emergencies/contingencies he/she is looking at? Are they planned or unplanned ? And accordingly use a health mix of FD and ARB MF, IMO.

Without running numbers specific for your situation...
You're at the income level where there is very little tax burden to be expected from gains/dividends on mutual funds. I'd leave it as-is and evaluate after your taxes this next year.
However, I would buy cheap index ETFs in your taxable in the future. This will solve your mutual fund CG issue for the future.

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