What are the stipulations for early withdrawal from mutual funds and what are the taxes and penalty's

Depends on the fund. Some funds impose a fee if you sell shares within a certain number of days or weeks after purchasing the fund. This is to discouage day-trading of the fund. If your fund imposes such a fee it will be spelled out in the prospectus. When you sell your fund you will owe taxes on any capital gains you may have (as when you sell any type of security), and also any capital gain distributions from the fund, or dividend distributions.

But I'm wondering, since you asked about taxes and penalties - are you asking specifically about funds purchased for either an IRA or a 401(k) account? Please clarify what type of fund you are talking about, and whether it's your own personal investment versus inside a retirement account.